Bitcoin futures trading platform and custody firm, Bakkt has secured the BitLicense by the New York State Department of Financial Services (DFS). A BitLicense is given for virtual currency businesses within the state of New York. The licenses now bring Bakkt under DFS supervision for its licensed activities.
New Yorkers Can Trade in Digital Currencies through Bakkt
According to an announcement from DFS Superintendent Linda Lacewell, the virtual currency license will allow Bakkt Marketplace to offer it’s New York customers the ability to buy and sell digital currencies.
DFS chief Superintendent Lacewell stated that the regulator was proud to be at the forefront of financial innovations, saying:
“With new technology advancing every day, DFS is proud to be at the forefront of financial innovation through our continuous efforts to set the conditions for virtual currency companies to germinate and grow.”
Bakkt CEO Gavin Micheal stated that the license was a significant milestone for the firm, saying:
“We’re extremely proud to be awarded a BitLicense by the New York State Department of Financial Services. This represents a major milestone to achieving our vision of making digital assets accessible to all, and we’re thrilled to continue driving innovation in this rapidly evolving industry, highlighted by the upcoming launch of the Bakkt App.”
Bakkt is the 29th Firm to Secure BitLicense
Bakkt gained the much sought BitLicense including the money transmitter license as BitLicense is considered to be one of the toughest crypto licenses to be secured due to its high rejection rate.
To date, the New York state regulator granted only 29 such licenses including the recent Bakkt license and only companies holding this license can offer crypto services in the state.
In 2018, Bakkt was first announced by its parent company Intercontinental Exchange (ICE), also the owner of the New York Stock Exchange (NYSE). It was eventually launched a year later in September 2019. The firm provides custody service for Bitcoin futures trading on ICE.