New York state’s Department of Financial Services (DFS) minutes ago announced approval for popular cryptocurrency bank and quasi exchange Coinbase to offer custody services in bitcoin core (BTC), bitcoin cash (BCH), ether, ethereum classic, XRP, and Litecoin.
DFS Authorizes Coinbase Global, Inc. to Form Coinbase Custody Trust Company LLC
DFS Superintendent Maria Vullo boasted, “New York continues to be a leader in creating, fostering, and responsibly regulating a financial services marketplace that promotes innovation, safeguards the industry and protects consumers through strong supervision. Today’s approval further demonstrates that the state regulatory system is the best arena in which to responsibly supervise the growing fintech industry within a sound ancomplianframework.”
Coinbase is arguably the most important bank/exchange in the cryptocurrency ecosystem. Founded summer 2012, it has since grown to not only include its trading options to nearly half a dozen digital assets, it also deals in over 30 fiat currencies around the globe. In the go-go 2017 run-up, the San Francisco exchange was on-boarding over 100,000 people a day.
President and COO of Coinbase, Asiff Hirji, struck a note of deference to what amounts to the company essentially being knighted by regulators. “Since 2014, the New York Department of Financial Services has proven itself to be a strong advocate in its support for the responsible growth of the cryptocurrency industry,” he was quoted as having said.
“We applaud the leadership Superintendent Vullo has shown to guide the responsible growth of the cryptocurrency ecosystem and look forward to working with their offices in the future.”
Cryptocurrency’s Establishment Continues to Cozy to Regulators
“Financial Services Superintendent Maria T. Vullo,” the DFS online post read, “today announced that the New York State Department of Financial Services (DFS) has approved the application of Coinbase Custody Trust Company LLC, a wholly-owned subsidiary of Coinbase Global, Inc., to operate as a limited purpose trust company.”
Earlier this year, the company earned Money Transmitter and Virtual Currency licenses from DFS. The new set of approvals allow “Coinbase Trust to offer secure custody services for six of the largest virtual currencies: Bitcoin, Bitcoin Cash, Ethereum, Ether Classic, XRP and Litecoin,” according to the press release.
New York, of course, is home to the world’s most important and powerful economy, the United States of America. The Empire State has a love-hate relationship with crypto, as moneyed interests have long sought to legally strangle what was, and largely still is, perceived as a wildcat new world of finance. Due to its Bit License, many companies eager to tap Wall Street investment were simply put off by burdensome regulations.
Coinbase has matured along with the broader crypto market, pulling in as much as $1 billion last year in revenue. It now has over 500 employees and more than 13 million users. And as the digital asset market matured, the industry’s players and regulators have seemingly begun to see their relationship as not adversarial as much as it might be simly one looking out for the other.
“DFS has rapidly responded to innovations by licensing technology based money transmitters under New York’s money transmitter law; online lenders under New York’s banking law; and virtual currency exchanges under New York’s financial services law,” the agency continued. “To date, DFS has approved eleven charters or licenses for companies in the virtual currency marketplace. DFS issued a virtual currency and money transmitter license to Coinbase, Inc. in January 2017 to offer services for buying, selling, sending, receiving, and storing virtual currency. Today, DFS authorized Coinbase Custody Trust to offer narrow services to operate as a custodian for virtual currencies, including Bitcoin, Bitcoin Cash, Ethereum, Ether Classic, XRP and Litecoin.”
CONTINUE THE SPICE and check out our piping hot YouTube channel.