ALBANY – State financial regulators ventured into the virtual world on Tuesday, granting a virtual currency license to Bitcoin bitFlyer USA distributor.
The decision of the Department of Financial Services allows bitFlyer USA – a wholly-owned subsidiary of Japan bitFlyer, Inc. – to offer online digital currency exchanges, trading platforms and custody services for Bitcoin's digital currency.
"As a financial services regulator in New York, the mission of DFS is to foster innovation and protect markets and consumers," said Financial Superintendent of Services Maria T. Vullo. "As the virtual currency market expands, New York will continue to support technological innovation while applying strong state-based regulation."
Before granting the license, state officials reviewed the company's money laundering, capitalization, consumer protection and cyber security policies.
BitFlyer is the sixth company to receive a virtual currency license or state charter. Previously, licenses were granted to Coinbase Inc., XRP II and Circle Internet Financial, and charters to Gemini Trust Company and itBit Trust Company.
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