- The New York State Department of Financial Services (DFS) has granted a Bitlicense to NYDIG
- The license allows NYDIG to conduct cryptocurrency business in New York
- The License was first introduced in August 2015
The New York State Department of Financial Services (DFS) has approved a Bitlicense for a new firm.
NYDIG Execution, a subsidiary of the New York Digital Investment Group LLC (NYDIG), was the recipient of the license and the announcement was made on the 14th of November 2018.
The license grants NYDIG Execution the power to conduct Cryptocurrency-related business and money transmissions in the State of New York.
They also have the power to act as a custodian for a number of coins such as Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), XRP (Ripple), and Litecoin (LTC).
Details of the License
The power given to NYDIG Execution will also extend to other subsidiaries of NYDIG trust.
NDIG will have the power to carry out with third parties or to do so with NYDIG Execution or its other subsidiary NYDIG Trust.
This license was first given out in August 2015 and by obtaining one, a business is given the power to conduct Cryptocurrency-related business and they also agree to comply with some laid down regulations of the The New York State Department of Financial Services (DFS).
These rules mostly relate to the issuance, storage, and maintenance of Cryptocurrency.
While on paper, the Bitlicense would be a good idea, it has come under fire from people within the Cryptocurrency industry for being restrictive despite creating a uniform guideline for Cryptocurrency business in the state.
This has led to a number of Cryptocurrency businesses leaving New York altogether.
Others, such as Circle, Square and Genesis Global Trading company have applied for and successfully received their licenses.
The creation of unique Cryptocurrency business laws in each state in the United States could go a long way to not only lend the industry some credibility but also streamline business practices and in some sense, organize the industry.
However, it must be kept in mind that like any other set of business laws, if they are too rigid or hostile, they will inevitably repel business from a state rather than bring business in.