Granting the coveted BitLicense
The popular European crypto exchange Bitstamp, which is also one of the largest exchanges, looks forward to expanding its operations in the United States, and it recently issued the latest virtual currency license of New York. Bitstamp recently granted the coveted BitLicense by the New York Department of Financial Services or NYDFS and now plans to expand in the United States.
According to some reports, the NYDFS awarded Bitstamp the 19th BitLicense, permitting the exchange in order to offer Bitcoin, Litecoin, Ether, Bitcoin Cash and XRP trading pair to the residents of the state. Bitstamp has first applied for the license in June of 2015 when NYDFS has created the landmark law of the country.
Bitstamp has been among the primary 22 applicants to receive the license, at the time when NYDFS created the law. While in the first several years it just issued several licenses, the regulators were issuing more and more over the time.
The CEO of Bitstamp, Nejc Kodrič, noted that in this year, they are the fifth which was granted, so he guesses the pace is picking up. So far, in this year, the primer brokerage Tagomi, and the stock trading app Robinhood, together with Bitcoin ATM operators LibertyX and Cottonwood Vending, received the coveted license.
Discussing the different aspects of the operation of the exchange
In order to get to this point, NYDFS and Bitstamp discussed various aspects of the operation of the exchange, said Kodrič, explaining that there were some questions about how the matching engine works, how they store cryptocurrency, and how they conduct audits. The license is actually a set of procedures and rules which a person needs to follow every day, so once the person does that, he or she can receive a BitLicense.
The CEO even likened the approval process to the standards of Europe: the exchange has a payment institution license in the European Union, permitting it to operate over the 28 countries that are members of the EU.
He said that the Bitlicense isn’t different than their financial services license which they have in Europe. They did not reinvent the wheel.
However, right now, the exchange which is already offering services within the United States looks forward to expanding its operations. The CEO even explained that the company firstly operated in the markets of Europe to date, but was passive when it comes to America.
But he also noted that the operations of Bitstamp all over the United States started before finishing the BitLicense, and as such, it is present in the country. He said that they were providing some services in the United States, including the New York State before there were licenses out there. They also have a lot of customers from the U.S., but they have some plans to go more active.
Launching new trading apps for Android and iOS devices
The CEO even noted that the standards of the New York State were not too far away from the ones of the EU. Despite the BitLicense just permitting the exchange to offer the users in the U.S. five cryptos, the CEO claimed that this is not a substantial limitation.
The exchange launched new trading apps for iOS and Android devices in recent times, with features which even permit users to disable them in case they lose the mobile devices remotely.
The Bitstamp exchange is primarily a crypto-to-fiat platform, although it does offer crypto-to-crypto services too. Right now, though, most of its volume comes from its fiat on, as well as off ramps.
According to the list of exchanges with a legitimate volume of the asset manager Bitwise, Bitstamp ranks within the top four, and according to the list of exchanges by reported volume of CoinMarketCap, it weighs in at number 56.