Xapo Just Received a BitLicense from the State of New York
Bitcoin wallet provider Xapo has received a BitLicense from the state of New York. The company becomes just the 8th firm to receive a license or charter from the New York DFS.
A press release announcing the news appeared online on June 14, 2018.
The news comes on the same day the NYDFS approved itBit’s plan to list four new tokens on its exchange.
Xapo’s BitLicense was announced by Financial Services Superintendent Maria T. Vullo.
Vullo explained in a statement:
“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.”
The statement explained that the New York DFS had completed a comprehensive review of Xapo’s application. They had analyzed the company’s anti-money laundering, anti-fraud, capitalization, consumer protection, and cybersecurity policies. As a new licensee, Xapo will be subject to ongoing supervision by DFS.
Xapo was described as “a digital financial services company offering bitcoin products and services” in the DFS statement. Xapo is best-known as a bitcoin wallet and vault. The company describes itself as “the world’s most secure bitcoin wallet.”
Xapo President Ted Rogers responded to the successful BitLicense application, saying, “We are very pleased with the approval of Xapo's BitLicense application. It is the end result of much hard work, not just by Xapo personnel but by the DFS and its staff.”
itBit Has Also Received Approval to List Four New Cryptocurrencies
The New York DFS announced itBit’s successful application to list new cryptocurrencies in the same press release.
The New York DFS had previously issued a virtual currency charter to itBit in May 2015. Today, DFS authorized itBit’s parent company, Paxos, to expand its offerings to include four new coins – Litecoin, Ether, Stellar Lumens, and Bitcoin Cash.
Chad Cascarilla, CEO of itBit in the press release prepared by the New York DFS said:
“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,”
“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.”
In total, the New York Department of Financial Services has now approved eight firms for virtual currency charters or licenses. It’s unclear how many applications the DFS has denied. In addition to Xapo, the DFS has granted licenses to Genesis, bitFlyer USA, Coinbase, XRP II, and Circle Internet Financial, while charters have been granted to Gemini Trust Company and Paxos (formerly known as itBit Trust Company).