Apex Crypto wins coveted Bitlicenses in New York

abdelaziz Fathi

Apex Fintech Solutions, which went public earlier this year through a merger with a blank-check firm, announced that its digital assets unit was awarded a coveted license to deal in cryptocurrencies in New York.

Apex Crypto was granted a so-called BitLicense by the New York State Department of Financial Services (NYDFS), joining a handful of firms who the approval to operate in the state. It now legally operates as a money transmitter and digital currency exchange, according to a company statement.

To maintain a BitLicense license, a provider must fulfill various reporting requirements and comply with standards on anti-money laundering, cybersecurity, and consumer protection.

New York is the only state that requires firms dealing in the digital assets to obtain a license to operate. The Empire State has established strong state-based regulation, but the approach has been widely maligned by the crypto community for being one of the strictest laws governing this type of business.

The news follows other, similar stories of progress for Bitcoin companies in the US, though cryptocurrency regulation still happens largely on a state-by-state basis.

“Apex’s BitLicense is a culmination of our team’s hard work and commitment to partner with regulators and state entities as we seek to provide Apex Crypto clients, as well as our end users, the ability to invest in what they want, when they want, in a clear and transparent manner,” said Danny Rosenthal, CEO of Apex Crypto.

“We appreciate the trust and framework guidance of the NYDFS throughout this approval process. As we move forward into this exciting next chapter for Apex, we are hyper-focused on providing premier service as the trusted investing infrastructure partner of choice across all asset classes,” added Rachel Saunders, CEO of Apex Digital Assets.

Apex allows partners to include cryptos into their brokerage portfolio

Apex Fintech (formerly Apex Clearing) is a financial technology firm that offers clearing, digital custody services and fractional share trading, among others, to its clients. Their offering focuses on enhancing brokerage functions such as opening accounts and onboarding, moving money, deposits and withdrawals.

Apex also opens the door for its partners to include the crypto assets into their clients’ portfolios alongside traditional brokerage assets, which has been disjointed in the past. From a legal and regulatory standpoint, the platform offers compliant custody and trading services for clients in most US states.

The fintech company allows clients to open cryptocurrency accounts to buy and trade tokens. In their initial launch, Bitcoin, Bitcoin Cash, Ethereum, and Litecoin were the first cryptocurrencies Apex supported, with plans to add more coins based on demand.

Apex, owned by financial technology firm Peak6, went public in February through a merger with Northern Star Investment Corp II in a deal that valued the combined entity at $5 billion.

It was the clearing house for no-commission stock app Robinhood until it launched its own clearing service. Apex was also reportedly bidding to provide PayPal with technology infrastructure to launch its stock-trading platform.

Read this next

Retail FX

XPRTcoin Review 2022 – Is XPRTcoin Scam or Legit?

Read our XPRTcoin review today to learn all you need to know about XPRTcoin before signing up with the broker (xprtcoin.com) – by FinanceFeeds.

Retail FX

Financial services domains blocked by Consob rise to 708

In yet another episode in a long-running campaign, the Italian financial regulator, Consob, once again blocked access to a number of investment websites, including those holding licenses in other jurisdictions.

Digital Assets

Binance upgrades Bahrain license to offer full-suite of crypto services

The Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).

Digital Assets

BitMEX spot exchange hits $24 million in daily volume

The newly-launched spot market of crypto exchange BitMEX reported a record of $24 million in 24-hour trade activity on May 25.

Retail FX

Financial Commission certifies offering of trade copier 4X Solutions

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has certified the trading technology offered by trade copier 4X Solutions.

Industry News, Inside View

LIVE from Devexperts webinar for brokers on Fractional Trading

Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.

Industry News, Retail FX

ASIC celebrates retail ban on binary options as 68% of wholesale clients lose money

In the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The product intervention order does not apply to wholesale clients.

Crypto Insider

Investing in crypto: how to stay away from weak players

The main reason behind the hacks of crypto exchanges is weak key management. For example, all 4 hacks that took place in 2021 were caused by the ability of hackers to obtain access to hot wallets. 

Retail FX

Vantage launches swap-free gold XAUUSD trades for all clients until end of July

“As the greenback continues to strengthen, we want to support traders who remain bullish on gold or seek short term trading opportunities amid the volatility”

<