By
Tolu Ajiboye
April 16th, 2024
New York Digital Investment Group has recently become the 14th company to be granted with BitLicense by the NYDFS.
This year the crypto community is actively tracking the news on new BitLicenses being granted by the New York State Department of Financial Services, which allow companies to offer crypto-related services in the state.
The New York DFS has already issued 14 BitLicenses and the latest one has been received by the New York Digital Investment Group (NYDIG).
14th BitLicense Granted
As it has been revealed, on November 14, 2018, the NY DFS approved the 14th application for getting the above mentioned license. Now New York Digital Investment Group (NYDIG) Execution LLC, a subsidiary of NYDIG LLC, officially has a virtual currency license and a money transmission license.
According to DFS superintendent Maria T. Vullo, the financial services marketplace in New York continues its growth and development. She highlighted that protecting consumers is the most important aspect while their final goal is to ensure the responsible growth of the industry.
Commenting their approval of NYDIG’s application for BitLicense, she said:
“Today’s approval further demonstrates that operating within New York’s robust state regulatory system leads to a stronger fintech marketplace and promotes innovation and necessary compliance with effective risk-based controls.”
NYDIG’s Services
The granted virtual currency license will enable NYDIG to provide New York residents with its liquidity and asset management services to New York residents.
Moreover, the NYDIG Trust Company, a subsidiary to the main entity has been permitted to act as a limited purpose trust company.
It means that the New York Digital Investment Group now has a right to offer custody and trade execution services, operating as a custodial for a row of digital currencies. This row includes Bitcoin, Bitcoin cash, Ethereum, XRP and Litecoin.
Speaking about Robert Gutmann, CEO of New York Digital Investment Group, said:
“NYDIG is pleased to receive these regulatory approvals and we look forward to providing secure and transparent liquidity, custodial and asset management services to the institutional market. We want to express our gratitude to the NYDFS for providing a clear and comprehensive regulatory framework for investors, providers and users alike to engage with the burgeoning digital asset ecosystem.”
BitLicense Critique
BitLicense was launched in 2015. Its holders have the right to work with cryptocurrencies, but to get it they need to meet a number of requirements connected with cryptocurrencies’ control, administration, storing, and issuance.
The license ensures clear regulation of the sphere within the state, nevertheless its requirements are widely criticized. Some companies have even left the state.
As we have already mentioned, earlier BitLicense was granted to 13 other companies, among which there are Xapo, Coinbase, Square, Coinsource. Genesis Global Trading received its cryptocurrency license in May and it was the first New York-based company and the fifth company globally to become the holder of BitLicense.