Crypto Brokerage Genesis Granted Bitlicense
Genesis Global Trading was granted a New York state Bitlicense by the authorities on Thursday, May 17. The over-the-counter (OTC) crypto trading service and Digital Currency Group Initiative can now operate legally in the state. It provides OTC trading in cryptocurrencies like Bitcoin, bitcoin cash, Litecoin, Ripple, Ethereum among others. It is limited only to institutional buying and selling of the digital coins.
With this permission to operate in the financial capital of the world, the company has opened up to several top notch institutional buyers based in the state. As the home to some of the biggest names in business, New York is an apt place for the exchange to base its operations. Now, it will be able to operate with other popular crypto businesses like Circle, Coinbase and Itbit.
The Department of Financial Services (DFS) of New York has now allowed the firm to add a long list of digital assets to its trade exchange without worrying about the legal connotations of the same. Before this, the company was operating in the state under the ‘safe harbor’ provision. Launched in 2013, the company is backed by Digital Currency Group (DCG), a venture capital firm founded by Barry Silbert.
The regulated OTC dealer will provide “access to institutional investors and high net worth individuals looking to buy or sell large sums of digital currencies,” as mentioned by the company. Currently, it is offering high-end trading and better liquidity than most other exchanges. It also provides same-day settlement and 24×7 trading facility to the users.
The CEO of Genesis Global Trading, Michael Moro said, “We are very pleased that DFS has approved the Genesis Global Trading BitLicense application. Although we have operated under a safe harbor provision in recent years, today’s decision is an important step forward and reaffirms the robust compliance measures we have enacted as an established trading partner.”
Silbert expressed his happiness in a Twitter post congratulating his team and “Hoping to see the NYDFS ramp up their licensing pace so that NY does not continue to fall behind.”
Their license becomes even more important in the wake of the fact that several institutions now want to take advantage of the digital coins and gain profits. Bitcoin’s unprecedented rise to $19,000 a coin in December 2017 has baffled the fence sitters who now want to dabble in this business with big money backing. Even though the exchange worked fairly well, getting a completely legal status now opens more doors to a new set of fence sitters and their money.
The platform demands a huge $75,000 minimum deposit from the traders, who have to fulfill all KYC and anti-money laundering guidelines of the state. The company will also be trading in Ethereum Classic and Zcash, a controversial privacy coin that is making headlines this year for its added anonymity along with Monero. The firm states that it has been registered with Finra as well as the Securities and Exchange Commission (SEC) of the US.
The change in trading volume will be noted soon as more investors rush to the exchange. It will also be interesting to see how the platform performs some of its promises (like same-day settlements) with increased load on its systems.