Cumberland Acquires a BitLicense, Paving Way for Institutional Trading Relationships in NY
Summary:
Cryptocurrency trading firm Cumberland has obtained a BitLicense from the New York State Department of Financial Services (NYDFS), enabling it to function as a certified virtual currency enterprise. Obtaining the BitLicense is a significant step, as it facilitates robust trading collaborations with institutional entities in New York. Despite controversies and legal cases around the BitLicense, including Genesis Global Trading and Gemini, Cumberland aims to forge a niche in the sparsely populated list of BitLicense holders to leverage BTC transactions for investment tools.
Cumberland, a prominent cryptocurrency trading firm, has acquired a BitLicense, a significant credential from the New York State Department of Financial Services (NYDFS) that recognizes it as a legitimate virtual currency enterprise. On June 17, Cumberland released a statement outlining its aspirations to cultivate robust trading collaborations with institutional entities in New York, made possible by this BitLicense. The company, being one of the 33 businesses featuring on the NYDFS website as license holders, alleges to be among the few primary trading enterprises bearing this authorization. From 2015 onwards, cryptocurency firms intending to function within New York have predominantly needed to secure a BitLicense for offering related products and services. Critics like New York City's Mayor Eric Adams question the efficacy of this system, claiming it inhibits innovation and economic progress. Related: Cumberland Labs Introduces SaaS API for Public Blockchains and DeFi ProtocolsCases against Genesis Global Trading and Gemini have been initiated by New York authorities over allegations of investor deception via the Gemini Earn scheme. As part of a resolution with the NYDFS earlier this year, Genesis consented to a fine of $8 million and the revocation of its BitLicense. The New York Attorney General's office similarly settled with Genesis and Gemini, barring both firms from functioning within the state and offering crypto lending services, respectively. Prior to the US Securities and Exchange Commission's endorsement of the spot Bitcoin (BTC) exchange-traded fund for listing and trading on exchanges earlier this January, Fidelity selected Cumberland as one of the firms to facilitate BTC transactions for the said investment tool. Cumberland functions across North America, Europe, and Asia. Magazine: The Reality of 'Bitcoin Layer 2s': Its Importance and Implications
Published At
6/17/2024 10:39:46 PM
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