Cumberland DRW, a digital asset trader and liquidity provider, has received a virtual currency license also known as the ‘BitLicense’ from the New York State Department of Financial Services (NYDFS).

This achievement points out that Cumberland meets all the requirements of the strict legal requirements and stands as one of the few main trading firms to have such a permit in New York.

Cumberland New York Crypto License

With the acquisition of BitLicense, Cumberland can establish strong trading relationships with institutional counterparts in New York, one of the financial centers. ”We are glad that New York State Department of Financial Services has issued a BitLicense to Cumberland New York,” said a company representative on their official X account.

In a social media statement, the company further emphasized its unique position in the market and its readiness to enhance trading operations.

We are pleased that the New York State Department of Financial Services has granted Cumberland New York a BitLicense. We are deeply committed to working with regulators to obtain proper, necessary licensing and ensuring our business is compliant and aligned with regulatory…

— Cumberland (@CumberlandSays) June 17, 2024

The BitLicense which was introduced by the NYDFS in the year 2015 is a license that is required for companies involved in the business of cryptocurrencies in the state of New York. It was developed to protect consumers and maintain the financial integrity of the market while some have accused it of inhibiting innovation.

Crypto Regulation in New York

The approval of the BitLicense to Cumberland occurs at a time when New York’s regulatory framework is in question. Some deficiencies have been noted in the recent audits of the NYDFS’s supervision of the BitLicense holders, such as the lack of or outdated information and slow application approval. These discoveries have therefore called for the improvement of regulatory measures to promote better supervision of the growing crypto market.

Cumberland’s getting of BitLicense is in line with the general trend of crypto exchanges and trading firms to obtain licenses in different jurisdictions. For instance, VALR, the South African headquartered biggest crypto exchange got approved in Poland to operate internationally.

This comes after they were granted dual-category licenses by South Africa’s Financial Sector Conduct Authority (FSCA), which is a major milestone in the integration of cryptocurrency with traditional finance. This shift towards the attainment of the licenses is an indication towards an increased focus on compliance and security in the international crypto space, which is a clear indication of the industries growth and preparedness to be adopted by institutional investors.

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The post Cumberland Trading Firm Receives New York Crypto License appeared first on CoinGape.

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Filed under: News - @ June 17, 2024 7:20 pm