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Are U.S. Authorities Warming Up to Crypto?
New York Grants 18th BitLicense to Tagomi
The New York Department of Financial Services (NYDFS) has approved a BitLicense to crypto broker Tagomi. This is the 18th time a request such as this has been approved. Other notable BitLicense holders includes eToro, a margin trading platform, and Robinhood a stock trading app that expanded to cryptocurrencies. The procedure to acquire a BitLicense is notoriously strict and hard to get, but it appears that the authorities are becoming a bit more relaxed. As per their press release;
Acting Financial Services Superintendent Linda A. Lacewell today announced that the New York State Department of Financial Services (DFS) has approved the application of Tagomi Trading LLC, a subsidiary of Tagomi Holdings Inc., for a virtual currency license. DFS has also approved a money transmission license for Tagomi.
"DFS is committed to fostering innovation and strengthening the competitiveness of New York's burgeoning virtual currency sector," said Acting Superintendent Lacewell. "The Department's approval of Tagomi's virtual currency and money transmitter licenses provides consumers with more choice and more protection in a continuously evolving global financial services marketplace."
Tagomi is a cryptocurrency "prime brokerage", meaning they buy & sell cryptocurrencies to hedge funds and large financial institutions. They are the 1st prime brokerage to be awarded with such a license in New York. This means that Tagomi can offer its services throughout the state of New York, which is well known for its financial institutions.
Tagomi CEO Greg Tusar said the following:
"We are excited that DFS has approved our application as New York's first agency brokerage for virtual currencies. Our team of industry veterans has developed our order routing services with sophisticated clients in mind, and we look forward to expanding our presence with New Yorkers. We appreciate the DFS's thorough review and careful approach to virtual currency market participants to make for a more transparent and equitable virtual currency landscape,"
It appears that financial authorities are slowly accepting the fact that cryptocurrencies are not going to disappear tomorrow. One can assume that we will see more BitLicenses being granted to crypto-related businesses in the future. The reason of course being taxation. All & all this seems to be good news for the world of cryptocurrencies and a sign of institutional adoption.