NYDFS Approves BitLicense for Fintech Lender SoFi, Allowing Six Crypto’s To Be Traded
- A BitLicense is required for cryptocurrency services to be offered by any business in New York.
- Presently, platforms that secure a BitLicense can offer services for Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, and Stellar Lumens.
In New York, the only way to operate any kind of cryptocurrency platform is to get approved for a BitLicense, which is handled through the New York Department of Financial Services. The process to get approved has been lengthy since the policy was implemented. However, a new press release from the NYDFS shows that SoFi Digital Assets has been approved for a BitLicense. SoFi Digital Assets is a fully-owned branch of SoFi.
The approval allows SoFi Digital Assets to secure both a BitLicense and a money transmission license. With this approval, the company has become the 24th businesses to get approval from the NYDFS for their cryptocurrency activities. The licenses show that the company can operate buy and sell services involving Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, and Stellar Lumens, specifically to the residents of New York.
Anthony Noto, the CEO of SoFi, stated that the company felt “thrilled” over the opportunity to offer crypto trading services within the state. He stated, “Putting our members’ interests first is our top priority at SoFi. That includes both offering individuals the products they want, like cryptocurrency within SoFi Invest, as well as protecting them, through a solid regulatory framework like that created by the New York State Department of Financial Services.”
In an announcement earlier this year, SoFi had already stated that they were looking to provide their customers with cryptocurrency services, around the same time that they partnered with Coinbase. Information was not readily available about the potential cryptocurrencies that would be listed on the platform, though Cheddar reports that the crypto trading services started being offered on the SoFi Invest platform in September, when they only had access to Bitcoin, Litecoin, and Ether.