New York adds two cryptocurrency exchange platforms to the five that were already operating legally. More specifically, Xapo and Square became cryptocurrency exchange platforms are next for obtaining the BitLicense. The initial approval of Square’s license came on Monday, June 18th, while Xapo received it on June 14th.
According to Maria Vullo, Superintendent of Financial Services of the New York Department of Financial Services (DFS), the agency certified Square to enter the “well regulated foreign exchange market.”
The DFS also approved the licensing of the Xapo, Inc., exchange bureau after passing revisions to “cybersecurity, anti-money laundering, anti-fraud, and consumer protection policies.”
The Paxos Trust Company, formerly known as itBit and a subsidiary of Kabompo Holdings Ltd., was also granted permission to trade in various cryptocurrencies such as Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and Stellar (XLM).
Square and Xapo cryptocurrency exchange platform to get the BitLicense to operate in New York legally
The announcements coincide with the statement of Barry Silbert, CEO of DigitalCurrencyGroup (DCG), who through his Twitter account announced the partnership of Genesis Trading with Square for the development of the application for the purchase and sale of Bitcoin (BTC), Cash App.
“Finally, the association that Genesis built over the last year with Square is revealed publicly. It has been great working with Jack Dorsey and his team,” said Silbert.
According to a press release from DCG, Genesis Trading processed the BitLicense next to Square, thus receiving approval to bid Ethereum (ETH), Ethereum Classic (ETC), Bitcoin Cash (BCH), Litecoin (LTC), ZCash (ZEC), and Ripple (XRP), although the latter is the subject of discussions between U.S. regulatory agencies, as it can be considered a security.
BitLicense is the regulatory requirement imposed in New York State for cryptocurrency exchange platforms to offer their services in this state. This measure, which has been in operation since 2015, has been the subject of criticism and controversy since it was proposed by former DFS superintendent Benjamin Lawsky, causing an exodus of companies operating in this town.
Now, Square and Xapo cryptocurrency exchange platforms are next in row to obtain the BitLicense to operate in New York legally.