Cryptocurrency exchanges are running in the race to expand their reaches and attract more buyers with different types of facility. In the pursuit of this, they are fusing a variety of features in the platform. From high-grade security to better payment mode, they are working on every aspect to lure more investors on the exchange. One such platform Bitstamp- one of the largest cryptocurrency exchanges of Europe is all ready to enter in U.S. territory and expand its reach.
Yes! you heard me correct it is ready to operate in U.S. Recently, it secures the BitLicense from NYDFS (New York Department of Financial Services). Surely, you might be reasoning what is BitLicense. Let me explain.
What is BitLicense?
BitLicense is a business license that grants activities involving virtual currencies. This is issued by NYSDFS and contains the set of rules that one needs to follow to regulate digital currencies in U.S. This framework covers all those that resides, locates and conducts business in New York.
Business needs BitLicense to run a variety of operation related to digital currencies in New York. Here are some codes that this framework conducts.
Business needs BitLicense if it involves in any of the following:
- Purchases and sells digital/virtual currencies as a customer business.
- Receiving or Transmitting virtual currencies as a business
- Performs virtual currencies exchange services
- Holds, stores, or controls virtual currencies on behalf of others
- Issues a virtual currency
Businesses do not need this License:
- Software development companies engaged in virtual currency.
- Sell or buy goods or services, or make an investment in virtual currencies.
Now it would be clear to you why Bitstamp showed interest in achieving BitLicense. This is 19th BitLicense issued by NYDFS to a crypto exchange. So, now you can buy Bitcoin, Ethereum, Litecoin XRP and more in US through Bitstamp.
Today this license is known as ‘virtual currency license” which is considered toughest regulatory license for cryptocurrency exchange to acquire. Bitstamp applied for this license back in 2015, and finally got it in 2109.
In the beginning, a handful of exchanges were awarded by this, though now it is more open in granting this license to more exchanges. Bitstamp is fifth currency exchange standing with a BitLicense
In the initial years, BitLicense was awarded to only a handful of crypto exchanges. However, the agency is now opening up to grant this license to more players participating in this sector. Bitstamp is the fifth crypto exchange to receive the license from NFDYS this year.
Till now, bitcoin ATM operators LibertyX & Cottonwood Vending, prime brokerage Tagomi and Stock trading app Robinhood have achieved this license.
The CEO of Bitstamp Nordic notes that before acquiring the license the company worked with NYDFS and addressed several questions. it is planning to expand in the other regions of US through providing a wide range of crypto-related services.
Surely, such license increases the reach to investors. If you are also indulged in such business, securing such license can increase your brand visibility in US. For U.S investors, this is a big opportunity to seek investment on sites like Bitstamp and used its great features like deposit and withdrawal of cryptocurrencies like Bitcoin, litecoin, ethereum, ripple, or bitcoin cash.
Cryptocurrency prices are relatively moderate on this platform and making payment is quite easier. For US investors, this is good news as there is one more cryptocurrency exchange ready to serve them.
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