The New York Digital Investment Group (NYDIG) has recently won a BitLicense from the state’s Department of Financial Services (DFS). According to the press release, the NYDIG can now provide crypto-related services in the entire New York state.
Furthermore, this virtual currency license will allow NYDIG to provide asset management services and liquidity to the New York residents. Granting the BitLicense, DFS will also allow the NYDIG Trust Company to function as a limited purpose trust company.
Providing Trading and Custody Services
Under the newly obtained BitLicense, NYDIG can also offer trade executions and custodial services for five digital assets. It includes Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH).
The Digital Investment Group can offer these custodial services in three ways. One way includes a self-custody by NYDIG. The others include contracting with third-party or NYDIG Trust or NYDIG Execution to offer custodial services.
Financial Services Superintendent Maria T. Vullo praised New York State regulators for this move. Vullo said that today’s approval shows that working with New York state regulators ensures a stronger fintech marketplace. Furthermore, the NY’s robust regulatory system promotes innovation along with the “necessary compliance with effective risk-based controls.”
“As the financial services marketplace continues to expand and evolve in New York, the implementation of strong regulatory safeguards that encourage the responsible growth of the industry, while first and foremost protecting consumers remains critical,” said Vullo.
New York DFS Showing Great Interest In Financial Services
In the last few months, the Department of Financial Services (DFS) has shown support for fintech innovation. Considered as one of the most strict regulators, several fintech firms with clean records strike a good rapport with the NYDFS.
Moreover, the NYDFS is also licensing different fintech innovations under different financial services laws of the state. Until now, the NYDFS has approved a total of 14 licenses for companies associated with the virtual currency marketplace.
Robert Gutmann, CEO of New York Digital Investment Group, praised the state regulator for its cooperation in granting licenses.
“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,” said Gutmann.
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