The obtained BitLicense will enable cryptocurrency brokerage firm Genesis Global Trading to facilitate the trading of several digital currencies.
As it has been announced, Genesis Global Trading, Inc., an industry pioneer and leader in digital currency trading, received a BitLicense from the state New York Department of Financial Services (DFS).
It means that the company has become the fifth firm in three years to obtain such an approval from the authorities. Nevertheless, it is the first New York-based trading firm to be granted with this license.
The obtained license lets companies make the trading of several digital currencies with its institutional trading partners simpler and faster. It will allow Genesis to facilitate the trading of Bitcoin, Ether, Ethereum Classic, Bitcoin Cash, XRP, Litecoin and Zcash.
Genesis is also a registered broker-dealer that functions under the approvals received from the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA), it also manages an over-the-counter crypto trading desk that delivers its services to institutional traders.
The firm has been functioning since 2013 year. Genesis offers access to institutional investors and high net worth individuals who are looking for a good chance to buy or trade large sums of digital currencies.
Genesis provides its trading partners with deep pools of liquidity, trading in a 24/7 regime, same-day settlement and professional expertise that has been gained from trading billions of dollars in digital assets since its entering the market.
Before having been granted with the license, Genesis had used an opportunity to operate under a “safe harbor” provision as all firms that had applied for receiving an approval from NY DFS have a right to operate in the state while their applications are under consideration.
Michael Moro, CEO of Genesis Global Trading, noted: “We are very pleased that DFS has approved the Genesis Global Trading BitLicense application. Although we have operated under a safe harbor provision in recent years, today’s decision is an important step forward and reaffirms the robust compliance measures we have enacted as an established trading partner.”
As NY DFS announced in its press release, “New York continues to lead the nation in regulating the growing fintech industry”. The granted approvals to some concrete companies including Genesis “demonstrate DFS’s commitment to protecting consumers and the virtual currency market while encouraging innovation, such as the expanded use of blockchain, and providing strong regulatory oversight to new and existing market participants.”
The BitLicense was introduced by New York’s financial-services department in 2015. The idea of its development was to create a special permit that would be granted to virtual currency exchanges. Nevertheless, this license is widely criticized by a number of crypto companies for having requirements that are too challenging to meet.
Coinbase, bitFlyer USA, Ripple subsidiary XRP II, and Circle Internet Financial are other firms that have been also granted with BitLicense. Gemini Trust Company and Paxos that have received NYDFS charters, still haven’t received BitLicense approval.