New York State Department of Financial Services (NYDFS) granted BitLicense and Money transmitter license to a San-Francisco based SoFi Digital Assets, enabling New York residents to trade crypto assets.
SoFi Digital Assets is a wholly-owned subsidiary of Social Finance Inc., an American online personal finance company that offers financial services including student loan refinancing, personal loans, and mortgages. With BitLicense in hand, SoFi Digital Assets can now offer its NY customers the facility to buy and sell digital assets.
Essentially, BitLicense acts as a green signal for virtual asset companies to offer crypto-related services for New York residents – consequently, the business will be able to operate their business of virtual currency activities in NY lawfully with the BitLicense issued by NYDFS. Notably, SoFi Digital Assets is one of 24 companies obtaining BitLicense from NYDFS which also includes Gemini crypto exchange and crypto brokerage Tagomi.
“DFS is committed to fostering innovation in New York’s vibrant virtual currency sector and ensuring its competitiveness as a market for new entrants,” said Superintendent Linda A. Lacewellin a statement.
The firm is now authorized to support cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH), Ether(ETH), Ether Classic(ETC), LiteCoin(LTC), and Stellar Lumens(XLM). Speaking about the approval of the BitLicense and Money transmitter license, SoFi CEO Anthony Noto expressed the excitement of offering crypto services “in addition to active and automated investing, as part of SoFi Invest in New York State,”. He said that the customer’s interest is their top priority and went to say;
“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 New York State Department of Financial Services.”
SoFi Financial Inc. launched its crypto trading wing in September to its fast-growing SoFi Invest platform. However, the platform has recently gained a green signal from New York regulators. Concerning the similar note, NYDFS said in a statement;
“After a rigorous application process, SoFi can now provide its members in the state of New York a trusted, secure platform to trade crypto,”