New York DFS approves virtual currency license application of Coinbase

Maria Nikolova

This is the fifth virtual currency business entity to receive a regulatory nod from the Department of Financial Services to operate in New York.

The New York State Department of Financial Services (DFS) has taken the number of licenses issued to virtual currency entities to five, with the latest such permission granted to Coinbase, Inc., a wholly owned subsidiary of Coinbase Global, Inc.

DFS has announced its approval of the application of Coinbase for virtual currency and a money transmitter license. The approval follows a detailed review of Coinbase’s applications, including the company’s anti-money laundering, capitalization, consumer protection, and cyber security policies.

The move comes as the body has been seeking to respond adequately to the challenges of fintech innovation.

Back in March 2014, soon after the collapse of MTGOX, the regulator has recognized the need for stricter oversight of virtual currency exchanges and issued a public order initiating a process for accepting licensing applications for virtual currency exchanges under the New York Banking Law.

Thus far, DFS has given its nod of approval to five firms for virtual currency charters or licenses. In addition to Coinbase, DFS has issued licenses to XRP II and Circle Internet Financial, as well as charters to Gemini Trust Company and itBit Trust Company.

As per London Stone Securities’ forecasts for 2017, bitcoin is a key topic for this year.

One of the major factors to consider in this respect is the Indian influence, especially given the November 2016 decision by prime minister Narendra Modi to pull Rs500 and Rs1000 notes from circulation in an effort to fight corruption and terrorism. As a result of this step, the weekly volume of bitcoin trading in India has jumped nearly twofold from prior levels. More and more people there are becoming adopters of the new technology, with London Stone Securities forecasting that this trend will persist this year.

The situation in China is also important to consider, as the Yuan is weak, and investors, speculators and ordinary citizens are aware that a key change is about to happen. This explains the rise in adopting Bitcoin in China. Furthermore, China seeks independence from the US Dollar and Bitcoin presents a genuine alternative.

Talking of Bitcoin’s role in global terms, Russia’s position is essential too, of course. However, the Central Bank of Russia is very strict concerning the virtual currencies themselves regarding them as means of funding terrorism. On the brighter side, the Bank of Russia is exploring the possibility of using innovative fintech solutions like blockchain.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”