Bitcoin exchange receives license to operate in New York
Coinbase, a popular California-based digital currency exchange, was awarded a coveted license to deal in digital currencies in New York becoming only the fifth such firm to win approval to operate in the state.Coinbase Inc., a subsidiary of Coinbase Global Inc., was awarded a so-called bitlicense by the New York State Department of Financial Services, and an now legally operate as a money transmitter, online lender and digital currency exchange, according to a NYSDFS news release published Tuesday afternoon. “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,” said Financial Services Superintendent Maria T. Vullo in a news release. New York has taken a relatively hard-line tacked to granting digital-currency companies clearance to operate within its borders. The Empire State is the only state that requires cryptocurrency firms to obtain a license to operate. The license has been widely maligned by members of the digital-currency community, who claim it stifles innovation.
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Coinbase co-founder and Chief Executive Officer Brian Armstrong said NYDFS’s decision reflects Coinbase’s efforts to operate the world’s most secure and compliant digital-currency exchange. He said the company planned on expanding in New York. Coinbase first applied for the bitlicense in August 2015. Obtaining a bitlicense comes at an interesting time for Coinbase. In November, the Internal Revenue Service sent the firm a subpoena ordering it to turn over customer records from between 2013 and 2015.