- Luxembourg-based Bitcoin trading platform has received the prestigious BitLicense from the NYDFS
- The license allows the exchange to expand its services in New York
- Residents of New York will now be able to trade BTC for USD at Bitstamp
Luxembourg-based Bitcoin exchange platform Bitstamp has received the coveted BitLicense from the New York State Department of Financial Services (NYDFS.) This according to a blog post published April 9, 2019.
Adoption: One Step at a Time
The adoption of cryptocurrencies is taking a slow and steady turn with the latest development being that Bitstamp, an exchange platform that allows traders to buy and sell digital currencies with fiat has bagged the prestigious BitLicense from the New York financial regulator. With the license in hand, the exchange can now work to expand its business footprint in the USA without any hindrance.
In their blog post, Bitstamp explains that the BitLicense will allow the exchange to form business partnerships with high net worth individuals and institutional investors in New York. Such synergy is always welcome in the cryptospace which has, for long, aimed to allure institutional investors to take the ecosystem to the next level.
Further, the BitLicense also ensures that Bitstamp is one of the exchanges with apt safety mechanisms to safeguard its customers. These safety mechanisms are typically related to the applicant company’s Anti-Money-Laundering (AML) and Know Your Customer (KYC) measures.
According to the blog post, the BitLicense requires exchanges to meet stringent requirements pertaining to consumer protection, something that the exchange “fully embraces.”
The license also ensures that the trading mechanism at Bitstamp is of the same effect as that in the traditional financial institutions.
Expanding Business Across the Atlantic Ocean
With the BitLicense in hand, Bitstamp, a Europe-based exchange platform, will now be able to run services to allow traders to buy and sell Bitcoin and other altcoins for US dollar and vice versa.
The press release notes that Bitstamp USA is further licensed to “facilitate transfers of funds onto the Ripple Network, issuing Ripple Balances in USD, other virtual currencies, and select fiat currencies, including the Australian Dollar, British Pound, Euro, Swiss Franc, and Japanese Yen.”
With the recent surge in the price of digital currencies, the Bitstamp news comes as yet another positive for the nascent industry.