Xapo and itBit Win Approval From U.S. Regulator to Offer Crypto Services

Cryptocurrencies, Law and Regulation, News

Xapo and itBit Win Approval From U.S. Regulator to Offer Crypto ServicesThe Department of Financial Services for New York State (DFS) announced on Thursday that a virtual currency license would be granted to Xapo and said that this was part of an ongoing process to “advance responsible growth.”

This came as itBit was granted permission to offer additional services and means that users will now be able to trade in four new cryptocurrencies: these will be Ethereum, Bitcoin Cash, Litecoin, and Stellar Lumens. The crypto exchange currently processes more than $100 million a day in volume, which makes it the second largest United States exchange.

Being a new licensee, Xapo will be subject to ongoing supervision from the DFS as they offer digital wallet and vault services intended to be one of the safest ways to store Bitcoin.

DFS superintendent, Maria T. Vullo, said in a statement that “Today’s actions represent New York’s continued commitment to creating a thriving, global fintech marketplace.

“Through strong and thoughtful regulatory oversight by DFS, consumers and the virtual currency market alike will continue to benefit.”

DFS issued itBit with a virtual currency charter back in May 2015, the company now being a custodian of Paxos Trust Company, which operates the exchange that provides services for the trading and storing of bitcoin.

“This is an important milestone for itBit as we create a broader platform for crypto asset investors. We are committed to the growth and evolution of this ecosystem, and DFS approval allows us to offer more trading and custody services across a wider range of crypto assets,” said Chad Cascarilla, CEO of itBit.

“Regulatory oversight and security have always been at the forefront of building our platform. We are thrilled to be able to offer these new services to our customers.”

The regulators have now approved eight firms for virtual currency licenses after Xapo satisfied them by demonstrating effective anti-money laundering, anti-fraud, capitalization, consumer protection, and cybersecurity policies.

Licenses have previously been granted to Coinbase Inc., Genesis Global Trading Inc., bitFlyer USA, XRP II, and Circle Internet Financial, and charters have been granted to Gemini Trust Company and Paxos (formerly itBit Trust Company).

Callum reports on developments in the cryptocurrency world and offers a take on the future of the blockchain. Can often be found with a cup of tea reading an altcoin whitepaper.

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