{"id":20969,"date":"2018-11-14T22:22:42","date_gmt":"2018-11-14T22:22:42","guid":{"rendered":"http:\/\/ci027cfe78f00d2697"},"modified":"2018-11-14T22:22:42","modified_gmt":"2018-11-14T22:22:42","slug":"new-york-department-financial-services-issues-14th-bitlicense","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/business\/new-york-department-financial-services-issues-14th-bitlicense","title":{"rendered":"New York Department of Financial Services Issues 14th BitLicense"},"content":{"rendered":"
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Today, November 14, 2018, the New York State Department of Financial Services (DFS) announced<\/a> that it has approved the application of NYDIG Execution LLC, a subsidiary of NYDIG LLC, for a virtual currency license and a money transmission license. The approval of this so-called \u201cBitLicense\u201d or \u201cVirtual Currency License\u201d application is the 14th of its kind and is required under New York State law in order for a company to engage in \u201cany Virtual Currency Business Activity.\u201d<\/p>\n

Under the BitLicense, NYDIG Execution LLC is allowed to offer secure custody and trade execution services, as well as to operate as a custodian for virtual currencies, including bitcoin, bitcoin cash, ether, ripple and litecoin.<\/p>\n

DFS Superintendent Maria T. Vullo approved the request, stating, \u201cToday\u2019s approval further demonstrates that operating within New York\u2019s robust state regulatory system leads to a stronger fintech marketplace and promotes innovation and necessary compliance with effective risk-based controls.\u201d <\/p>\n

First enacted in August 2015, BitLicense regulations caused an outcry from the community. Some industry companies such as Circle pursued<\/a> a BitLicense, and others such as itBit (now Paxos Trust Company) received<\/a> approval to operate as a \u201cchartered trust company\u201d with DFS oversight. However, many left<\/a> the state for more accomodating jurisdictions in what the New York Business Journal<\/em> called \u201cthe Great Bitcoin Exodus,\u201d citing overly burdensome regulatory hurdles, excessive disclosure requirements and financial disincentives in pursuing the license applications. <\/p>\n

San Francisco\u2013based exchange Kraken withdrew from servicing New York residents because of the state\u2019s new licensing requirements. In a blog post<\/a> titled \u201cFarewell, New York,\u201d the founders of Kraken stated, \u201cRegrettably, the abominable BitLicense has awakened. It is a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth.\u201d<\/p>\n

The process of granting Virtual Currency Licenses had been slow initially, with Coinbase acquiring the third-ever BitLicense in January 2017, 16 months after the final rules around virtual currencies were adopted. However, 2018 has seen a rise in the number of licenses granted, with nine this year, the seventh of which was awarded<\/a> to ATM operator Coinsource only two weeks ago. NYDIG\u2019s license comes eight months after a proposed alternative to BitLicense regulations was put forth<\/a> in the New York State Assembly. As of this writing, that proposed legislation is still in committee.<\/p>\n","protected":false},"excerpt":{"rendered":"

Under the BitLicense, NYDIG Execution LLC is now allowed to offer secure custody and trade execution services, as well as to operate as a custodian for virtual currencies, including bitcoin, bitcoin cash, ether, ripple and litecoin.<\/p>\n","protected":false},"author":3483,"featured_media":20970,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[2347,760,2924,1772],"class_list":{"0":"post-20969","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-bitlicense","9":"tag-kraken","10":"tag-new-york","11":"tag-nydig"},"author_data":{"id":3483,"name":"Andrew Nelson","nicename":"andrew-nelson","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/af835cd11a5a229df8ac174e518cd28da06a525a2406929b15f3e30a0965090e?s=96&d=robohash&r=g"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/new-york-department-of-financial-services-issues-14th-bitlicense.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/20969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3483"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=20969"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/20969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/20970"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=20969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=20969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=20969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}