Bitstamp, one of
the largest cryptocurrency exchanges in Europe, has been granted a license, the
Bitlicense, to offer digital currency services in the state of New York, making
it the nineteenth firm to receive authorization. The license includes the
ability to use XRP’s decentralized exchange to carry out transactions.
Bitstamp Receive New York Virtual Currency License
The New York State Department of
Financial Services (DFS) has permitted Bitstamp Inc to offer cryptocurrency
services in the state, three years after the company submitted its proposal.
This announcement was contained in a press release by the department, with Acting Superintendent Lacewell
expressing delight at this latest development. In a statement, Lacewell said:
“We are pleased to welcome Bitstamp to New York’s growing virtual currency marketplace. A regulated industry protects customers while supporting innovation and ensuring our financial services sector is a vibrant part of New York’s economy.”
The exchange’s CEO Nejc Kodrič noted
that they appreciate the robust regulatory framework in New York that aims to
protect consumers using digital currencies. He added that Bitstamp is already
looking forward to expanding its business in the region. And it’s without a
doubt that this approval will allow the European exchange to expand their
operations within the US.
Read: Bitstamp Partners With Leading
Swiss Online Bank to Enable Bitcoin (BTC) Funding and Withdrawals
The Luxembourg based exchange now
becomes the fifth company to receive the New York State virtual currency license this
year after the NYDFS awarded Tagomi, Robinhood, LibertyX, and Cottonwood
Vending similar licenses earlier this year.
But this was mostly expected.
Bitstamp is a fully regulated cryptocurrency exchange in Europe, with Kodrič
pointing out that the company has always embraced regulatory efforts aimed at
boosting transparency and accountability as that would help expand the crypto
space and close the gap between them and the traditional financial sector.
The Bitlicense doesn’t cover all
cryptocurrencies at the moment since the NYDFS did legalize Bitcoin (BTC),
Bitcoin Cash (BCH), Litecoin (LTC), Ripple (XRP), and Ether (ETH). However,
Kodrič noted that the five cryptocurrencies are not a firm limitation adding
that Bitstamp has many customers in the US, but they are planning to become
even more active in the country.
Ripple Network Will Facilitate Funds Transfer
The NYDFS also allowed Bitstamp to
transfer funds using the Ripple Network. “Bitstamp
USA is also authorized to facilitate transfers of funds onto the Ripple
Network, issuing Ripple Balances in USD, other virtual currencies, and select
fiat currencies, including the Australian Dollar, British Pound, Euro, Swiss
Franc, and Japanese Yen,” the NYDFS added.
If anything, this is extremely
bullish for Ripple and XRP community. It not only brings forth Ripple user
cases but spreads awareness that the Ripple Network operates like a decentralized exchange (DEX) where cryptocurrency
exchanges are connected, with the money coming from arbitraging and market
making. Transactions carried out on this network makes use of XRP, and the
coins used as fees are destroyed. The inevitable scarcity of the cryptocurrency
could lead to an increase in its price and might help lure investors.
Also Read: Breaking: Bitstamp Sold to a
South Korean Investment Firm
The XRP community were excited about
this latest development, with XRP Research Center pointing out that the license means Bitstamp can use the
XRPL Decentralized Exchange to issue fiat-backed and crypto-backed IOU and
Bitstamp authorized to use XRPL’s DEX.
“Bitstamp USA is also authorized to facilitate transfers of funds onto the Ripple Network, issuing Ripple Balances in USD, other cryptos, and select FIAT currencies, including AUD, GBP, EUR, CHF & JPY.”https://t.co/VXBwGhfE2o
— XRP Research Center (@XrpCenter) April 9, 2019
The XRP enthusiasts hope that this
latest development could lead to greater adoption of the cryptocurrency and a
possible increase in price over time.