24 October 2017
Register now

Coinbase gets NYDFS virtual currency license

17 January 2017  |  3426 views  |  0 Source: New York State Department of Financial Services

Financial Services Superintendent Maria T. Vullo today announced that the New York State Department of Financial Services (DFS) has approved the application of Coinbase, Inc., a wholly owned subsidiary of Coinbase Global, Inc., for a virtual currency and a money transmitter license.

As a leading state financial services regulator, 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. DFS, citing its experience in regulating emerging financial services technology firms, recently submitted a comment letter in opposition to the Office of the Comptroller of the Currency (OCC) proposal to create a new national bank charter for “fintech” companies.

"Through the creation and promotion of strong state-based regulation, DFS continues New York’s long record of being responsive to technological innovation,” said Financial Services Superintendent Vullo. “New York is committed to fostering and encouraging the long-term growth of new industries throughout the state while enforcing all necessary safeguards to protect our markets and consumers.”

DFS has conducted a comprehensive review of Coinbase’s applications, including the company’s anti-money laundering, capitalization, consumer protection, and cyber security policies. Coinbase, which is subject to ongoing supervision by DFS, offers services for buying, selling, sending, receiving, and storing bitcoin.

Brian Armstrong, Coinbase CEO and Co-founder said, “At Coinbase, our first priority is to ensure that we operate the most secure and compliant digital currency exchange in the world. We're thrilled to have obtained the BitLicense and look forward to expanding our business in New York.”

After rigorous review, DFS has approved five firms for virtual currency charters or licenses, while denying those applications that did not meet DFS’s standards. In addition to Coinbase, DFS has granted licenses to XRP II and Circle Internet Financial, and charters to Gemini Trust Company and itBit Trust Company. The companies that have received application denial letters ordering them to stop any New York operations are ChangeCoin Inc., Ovo Cosmico Inc., Snapcard Inc. and OKLink PTE. LTD. 

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.innotribe.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
20590 views comments | 31 tweets | 44 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15551 views comments | 24 tweets | 33 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
11167 views comments | 12 tweets | 23 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job