There is some good news for the cryptocurrency community in New York State. They will soon be having more options to trade digital currency. According to a recent report, the New York State Department of Financial Services will soon be granting the BitLicense to Coinbase and Ripple Labs.
The companies Coinbase Inc. and ripple Labs Inc. have been in line for the grant of BitLicense, which is necessary for and digital currency based to operate in the State of New York. The New York State Department of Financial Services had recently published a notice concerning both the companies on its website, which according to sources mean that all the regulatory paperwork has been received and processed by the financial regulatory body.
Once the notice is published, it is very likely for the companies mentioned in the notice to receive BitLicense. However, the exact timeframe for the issue of licenses is not available. Until now, both San Francisco-based companies did not have the authorization to offer their services in New York and it is going to change in the coming days.
In another news, the New York-based Bitcoin exchange platform, Gemini will soon be including Ethereum trading option on its platform. The company, which is already authorized to operate in the New York has so far been offering bitcoin trading option to its customers. The company, operated by the Winklevoss twins has received clearance from the same regulatory body to add Ethereum to its offering.
Even since BitLicense was introduced last year by NYSDFS, the regulatory environment in the state has become too strict. Many bitcoin companies have already moved out of the state instead of applying for the costly BitLicense which also requires the cryptocurrency platforms to introduce stringent regulatory and compliance set up.
The cryptocurrency community in the State of New York is currently deprived of many popular services. Some of these companies are gradually re-entering the state by complying with the regulations and more may follow soon.
Ref: Reuters / VentureBeat