Another seemingly long wait for a crypto trading company has been granted with an answer and now has a permission to work its way towards the local American crypto users.
The Long Wait Is Over
After 4 years in the making, Bitstamp, a London-based cryptocurrency trading company founded in 2011, has finally reached its goal to introduce their services to their American counterparts as the company recently received its official permission to expand market– specifically in US’ big apple, New York.
As announced in Bitstamp’s website, New York State Department of Financial Services (NYDFS) has granted them BitLicense as to formally give them right to deal with United States’ cryptocurrency trading ecosystem.
“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,” written on its website.
Bitstamp Now Open For US Business
Now that Bitstamp had acquired permission to open business in New York, citizens from the state may now easily transact exchanges of offering bitcoin, litecoin, bitcoin cash, ether and XRP with the European company.
Expect More BitLicenses Soon
According to Bitstamp’s CEO Nejc Kodrič, the fact that BitLicenses are given on a not-daily-basis by the state, its importance to acquire one makes a huge great difference for their company among other exchanges. As also observed by him, NYDFS seemed to grant more licenses today as it was “becoming more routine to them.” Added by him, “This year we are the [fifth] that was granted so I guess the pace is picking up.”
As known by most crypto enthusiasts, BitLicense is a tricky loop for crypto-related businesses that wishes to enter the American stream. Most importantly, in order to be granted one, it usually take time and effort for the company — a lot of time actually.
Not Good For Most Businesses
Due to this, some crypto exchange companies gave a thumbs down for the state as they describe the government action as an ‘absolute failure’ for the industry.
“I don’t think that any single thing New York is asking for is unreasonable. But it can’t be a three-year process. So you need to either speed up that process, or you need to lower the bar,” says Arnold Spencer, general counsel for Coinsource, in 2018.
“I think the effect you’re seeing with this new digital asset economy is some businesses are simply just choosing to leave, because they’re finding it too onerous, and too time-consuming. DFS’s goal is importantly to protect consumers and investors, but this has been a somewhat unintended consequence,” says Michelle Gitlitz, a partner in Blank Rome’s New York office, who co-leads the law firm’s blockchain technology and digital currencies group.