Peter Thiel-Affiliated Institutional Investor-Focused Crypto Brokerage Tagomi Receives BitLicense
The cryptocurrency brokerage backed by Peter Thiel, Tagomi, has received the BitLicense permission to operate in New York, one of the most regulated states in the US.
The BitLicense has been issued by the Department of Financial Services in the state. The information was released by Fortune a few hours ago.
Crypto Platform Tagomi Receives BitLicense
The firm from New Jersey received the BitLicense after a seven-month-long application process, which can be quite difficult for smaller startups and firms to pass it.
This is the 18th firm that receives a BitLicense permit to operate in New York. Greg Tusar, Tagomi’s co-founder and CEO commented about it:
“The number of clients that opens up in New York is quite a substantial opportunity. We definitely have a backlog of clients that we would like to onboard that we were waiting for this approval to move forward with.”
Tagomi aims at offering the best crypto prices for users. Other platforms have wide spreads between the buying and selling price.
The firm has recently gathered $12 million from investors and the intention is to add margin trading, lending and shorting. The brokerage has also received support from Paradigm, Pantera Capital, and Peter Thiel’s Founders Fund.
The firm will allow users to trade different virtual currencies, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). They also have the approval to add new digital assets in the future in case there is an increased demand for them.
There are other states in the country that have implemented more flexible regulations for crypto-related companies and that aim at attracting new firms to their jurisdictions.
Wyoming, for example, is one of these states that has already implemented a friendly crypto-regulation. In New York, it is very complicated to receive a BitLicense and start operating in the state.