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.
