Luxembourg based cryptocurrency exchange Bitstamp which was started to compete with Mt. Gox crypto exchange back in 2011 has finally managed to obtain a BitLicense from NYDFS. It is one of the oldest cryptocurrency exchanges that have managed to retain successful operation post-2017 crypto market decline. And is the 19th company to be granted a license to deal with business virtual currencies in the state of New York. While the company has been active in the U.S.A. for quite a while now with a considerably large customer base, this move is a great supporting factor that will help hasten their process to gain increased client base from institutional investment sector. According to the statement issued by the company to press and media
“Bitstamp has always embraced regulatory efforts which focus on transparency and accountability that can help expand the industry. Obtaining a BitLicense is a key element in ramping up our presence in the United States, especially when it comes to working with institutional investors.”
And this shows the efforts and commitment of the company to boost its service offerings in the U.S.A. While the exchange offers trading services, it is largely used as an outlet that facilitates cryptocurrency to fiat and fiat to cryptocurrency transactions.
New York State Department of Financial Services is a regulatory body with high standards that emphasize on safety, soundness of financial products and services to ensure fair and timely fulfillment of financial obligations thereby enforcing fair business practice. The company already has a business license in EU that facilitates operation across all major markets and given the approval of license by NYDFS, the company’s worth in institutional market is likely to see a significant boost. Since its debut in 2011, the company has struck to list of short list of cryptocurrency assets which are made up of Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin. The fact that the company has a wide base of customers across the globe with regulatory license approvals from not one but two bodies is proof that the exchange provides services which are subjected to high level of security and business standards which are found in traditional financial institutions.