Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
SoFi crypto investment firm will facilitate cryptocurrency trading in the New York State as its application for BitLicense was approved.
The beginning of 2020 will likely be a trading activity shift. Law-abiding investment funds flow into the market, aiming at providers of the necessary insurance and hedging instruments. According to PRNewswire, it has become known that the New York Department of Financial Services’ (NYDFS) approved the application submitted by San Francisco-based SoFi for getting a BitLicense.
“This approval is a testament to our ongoing commitment to earn the trust of regulators and stakeholders as we try to offer investors more choice for products and services across the country.”
Aggressive Environment Moves Clean Capitals to Clean Companies
SoFi charges no fees on account minimum and stocks trading. It will provide its members with a renewed way of operating digital money, both with automated and active investing.
Per Anthony Noto, CEO at SoFi:
“Putting our members’ interests first is our top priority at SoFi. That includes both offering individuals the products they want, like cryptocurrency within SoFi Invest, as well as protecting them, through a solid regulatory framework like that created by the New York State Department of Financial Services. We’re thrilled to now be able to offer the trading of cryptocurrency, in addition to active and automated investing, as part of SoFi Invest in New York State, in addition to the full suite of SoFi products that help our members borrow, save, spend, invest, and protect their money.”
Investors From the New York State Can Join the Regulated Market
The recent success of Bakkt trading shows that institutional investors are keeping significant interest in cryptocurrency. They just keep a calm pace while entering the market. Considering that even Ethereum Foundation members can be jailed for evangelism, people are more cautious when it comes to trading. Many of the so-called “mainstream” cryptocurrency exchanges only seem legitimate. When looking closer, you spot the horrible system of money laundering, covert ops, espionage, controversy, and all kinds of financial drama you can imagine.
The thousands of ICO firms have the opportunity to make millions of dollars in cryptocurrencies. They often sell not-so-perfect assets for Bitcoin, Ethereum, Bitcoin Cash, Monero and similar mainstream cryptocurrencies. Then, they send the coins to exchanges without KYC and the funds become somewhat “cleaned”.
Not Yet Cleaned Coins
Exchanges use trading bots, charge listing fees, fake incoming volumes. Some even ask KYC documents while being a pseudo-DEX, right before officially going offline. This is insane, from a regulatory standpoint.
When dealing with firms selling and buying capital in the legal zone, you don’t have to bother about the scary actors such as Chainalysis or Crystal Blockchain. Even if they spot that some coins on the regulated exchange sent by hackers or ICO scammer, the investment firm can guard you.
The BitLicense is famous for a strong regulatory set of rules and not every firm in the crypto space can obtain it with ease. Some firms will have to go through unbearable changes only to be able to apply. SoFi’s business model appeared to be established well and jumped one level up, according to the sources.