SoFi Obtains BitLicense For Crypto Trading Services In New York

The California based financial firm SoFi has recently acquired a BitLicense from the New York State Department of Financial Services (NYFDS) as the regulator announced in an official statement on December 3. Now that SoFi obtains a BitLicense, the company is one of the 24 cryptocurrency-related businesses which are legal to operate in the state.

According to reports found on Bloomberg Law, there are 24 businesses that obtained such licenses since 2015. Specifically, SoFi is one of them – but the firm has acquired two licenses – one of which is a virtual currency license (BitLicense) and the other is a money transmitter license. The latter will allow SoFi Digital Assets to offer crypto trading services to its New York customers.

As the announcement shows, SoFi obtains a license which makes it authorized to support a total of six digital assets which include Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), Litecoin (LTC) as well as Stellar (XLM).

The cryptocurrency news also show that the Superintendent of the NYFDS Linda Lacewell noted that the authority is committed to fostering innovation in the New York’s crypto ecosystem. She stated:

“The Department’s approval of SoFi’s virtual currency and money transmitter licenses provides consumers with more choices in a continuously evolving global financial services marketplace.”

Now that SoFi obtains a BitLicense, the firm can start offering its services legally. The excitement was shared by the entire team and the CEO of SoFi Anthony Noto who said that this decision was a response to client demand:

 “Putting our members’ interests first is our top priority at SoFi […] That includes both offering individuals the products they want, like cryptocurrency within SoFi Invest, as well as protecting them, through a solid regulatory framework like that created by the NYDFS.”

For those of you who do not follow our Bitcoin news, a BitLicense is a major business license for cryptocurrencies with a number of terms and conditions including rules on operating with digital currencies, administration, control, maintenance, storing and issuing them. Earlier this year and before this news, NYDFS granted such licenses to two subsidiaries of crypto derivatives firm Seed CX – Seed Digital Commodities Market LLC and Zero Hash LLC.