The New York State Department of Financial Services (DFS) announced on January 24 that approval had been granted to two cryptocurrency firms. These are Robinhood Crypto LLC, a subsidiary of Robinhood Markets Inc., and Moon Inc., dba LibertyX. According to the financial regulator, a total of 16 virtual currency companies have been approved in the state.
Two Cryptocurrency Companies Receive Approval from the DFS
Maria T. Vullo, the Financial Services Superintendent, revealed that Robinhood Crypto LLC and LibertyX had been fully licensed to carry out their operations in New York. As a result, Robinhood Crypto LLC will be able to offer customers in the area seven cryptocurrencies which are not limited to Bitcoin, Bitcoin cash, and Ether.
The online brokerage platform is reportedly available in 30 states in the U.S. It also operates on a no-commission basis, where customers are not charged fees during transactions. Asides from that, the DFS added that a money transmission license had been approved for Robinhood Crypto LLC.
While commenting on the new development, Vlad Tenev, Co-Founder and Co-CEO of Robinhood Markets, Inc. said:
We’re delighted that Robinhood Crypto has been granted a virtual currency license and a money transmitter license in New York. This will complement the larger suite of investment services that New Yorkers already have access to on the Robinhood platform.
Bitcoin ATM Operator Also Gets Approved
LibertyX, on the other hand, is a crypto ATM operator whose licensing will allow them to offer the trade of Bitcoin at its ATMs located in New York. The financial regulator also said they are the first virtual currency firm dealing with Bitcoin ATMs to have been approved by the DFS.
Furthermore, the DFS stated that they are fostering the growth of the financial technology sector in New York through the responsible supervision and advancing of innovation. Also, its recent approval adds more virtual currency providers to a list of those who appreciate its regulatory framework. According to them, the framework is beneficial to consumers and the industry.
Requirements to be Adhered by Approved Firms
In the same vein, requirements which have to be adhered to by the duo to ensure customer protection were outlined. Some of these include the use of Antimoney Laundering and OFAC controls. Others are setting up effective risk-based control to curb the illegal use of Bitcoin and responding to customer’s complaints promptly.
BTCNN on January 11 also revealed that a Blockchain centre had been launched in New York. The hub aims to provide training to software developers and the public. Moreover, the state has invested $100,000 in aiding its processes.