The NYDIG Execution has been granted a BitLicense by the New York State Department of Financial Services (DFS) on Nov 14. NYDIG Execution is a subsidiary of the New York Digital Investment Group LLC (NYDIG), which is now authorised to operate crypto-currency related business involving money transmissions. The new BitLicense permits the firm to offer crypto custodial and trade execution services in the jurisdiction of New York state. NYDIG will be allowed to operate as a crypto custodian for five crypto-currencies; Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), XRP (Ripple), and Litecoin (LTC).
First issued in August, 2015, BitLicense is a business license that entitles the holder to use crypto-currencies and obliges them to comply with a number of rules covering crypto-currencies’ control, administration, maintenance, storing, and issuance.
While the license provides businesses with a defined regulatory framework for cryptocurrencies in New York, many industry entrants have reportedly criticized its regulatory requirements. The introduction of the BitLicense initially drove some companies to leave the state.
This year, several major players in the crypto and payments industries have applied for and received BitLicenses. In March, crypto payments and investment firm Circle received a BitLicense, effectively expanding its business to 46 states.