New York State’s Department of Financial Services (DFS) announced it has granted a license to Coinbase Inc., part of Coinbase Global Inc., to operate as a virtual currency and a money transmitter.
Coinbase has passed DFS’ assessment procedures regarding anti-money laundering, capitalization, consumer protection, and cyber security policies.
DFS has conducted a comprehensive review of Coinbase’s applications, including the company’s. Coinbase, which is subject to ongoing supervision by DFS, offers services for buying, selling, sending, receiving, and storing bitcoin.
“At Coinbase, our first priority is to ensure that we operate the most secure and compliant digital currency exchange in the world. We’re thrilled to have obtained the BitLicense and look forward to expanding our business in New York,” Coinbase CEO and co-founder Brian Armstrong said.
Other entities that have received DFS’ approval to operate in New York State as cryptocurrency exchanges are XRP II, Circle Internet Financial, Gemini Trust Company and itBit Trust Company.
“Through the creation and promotion of strong state-based regulation, DFS continues New York’s long record of being responsive to technological innovation,” said financial services superintendent Maria Vullo. “New York is committed to fostering and encouraging the long-term growth of new industries throughout the state while enforcing all necessary safeguards to protect our markets and consumers,” she added.
Coinbase was established in 2012 in San Francisco and is believed to be the largest Bictoin-focused company in terms of investment. It operates cryptocurrency exchanges in 32 countries, and offers bitcoin transactions and storage in 190 countries worldwide.