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New York Financial Watchdog Approves Bitcoin and Other Cryptos for Custody and Trading

Summary:
Following a recent update, the New York State Department of Financial Services (NYDFS) has approved eight cryptocurrencies for sale and trade and ten digital assets for custody by licensed entities.NYDFS License Cryptocurrencies For Trading And CustodyIn the latest update posted, the NYDFS has outlined the importance of regulating all assets available for purchasing and trading in the state. The department responsible for regulating financial services and products has been exploring multiple cryptocurrencies as already numerous entities are licensed to operate in New York State.Eight digital assets have received approval for listing and trading as of August 3rd. Those are Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Binance USD (BUSD), Gemini Dollar (GUSD), Pax Gold

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Following a recent update, the New York State Department of Financial Services (NYDFS) has approved eight cryptocurrencies for sale and trade and ten digital assets for custody by licensed entities.

NYDFS License Cryptocurrencies For Trading And Custody

In the latest update posted, the NYDFS has outlined the importance of regulating all assets available for purchasing and trading in the state. The department responsible for regulating financial services and products has been exploring multiple cryptocurrencies as already numerous entities are licensed to operate in New York State.

Eight digital assets have received approval for listing and trading as of August 3rd. Those are Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Binance USD (BUSD), Gemini Dollar (GUSD), Pax Gold (PAXG), and the Paxos Standard Token (PAX). In addition to all of those, Ripple (XRP) and Ethereum Classic (ETC) have been approved for custody.

However, the department could change its mind and delist each token at any time:

“The DFS (department of financial services) may, at any time and in its sole discretion, prohibit or otherwise limit a coin’s use before or after a VC Entity begins using a coin; require that any VC Entity delist, halt, or otherwise limit or curtail activity with respect to any coin; remove any coin from the Greenlist; refrain from placing any coin on the Greenlist; or discontinue the Greenlist process entirely.”

New York Financial Watchdog Approves Bitcoin and Other Cryptos for Custody and Trading
New York City. Source: LovelyPlanet

Licensed Entities And History

The NYDFS began regulating organizations within the digital asset field more than five years ago under the New York Financial Services Law. Since then, the so-called “BitLicense” has worked to “ensure that New Yorkers have a well-regulated way to access the virtual currency marketplace and that New York remains at the center of technological innovation and forward-looking regulation.”

The department has also explained the thorough processes each entity needs to pass to receive the proper license. Those include comprehensive documentation on how it plans to maintain, monitor, and assess the risks associated with dealing with cryptocurrencies.

According to the latest update of regulated entities operating in NYS from June 19th, 2020, there’re 25 licensed organizations. Some of the most popular companies include Bakkt, Bitflyer, Bitpay, Bitstamp USA, Coinbase Custody Trust, Coinbase Inc, Fidelity Digital Asset Services, Gemini Trust Company, Paxos Trust Company, Robinhood Crypto, Square, and Xapo.


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