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New York Regulators Grant BitLicense to Bakkt

New York Regulators Grant BitLicense to Bakkt

The cryptocurrency arm of ICE (Intercontinental Exchange) has received the much-solicited BitLicense. It will enable them to provide digital currency services in the state. The New York’s DFS has granted a BitLicense to crypto custody firm Bakkt, indicating its twenty-ninth BitLicense. A BitLicense is a term generally applied to specify the license provided for virtual currency businesses in the state of New York. 

New York’s Regulators issued 29 BitLicense till date

BitLicense came into existence in 2015, and firms asking to receive one will have to satisfy specific requirements, causing a hefty amount (over $100,000 in costs). BitLicense is one of the most challenging crypto licenses owing to its high rejection rate. To date, the New York state regulator allowed only 29 such licenses. Companies owning this license can administer crypto services in the state. Bakkt’s CEO Gavin Michael stated that the approval described “a major milestone” to fulfil their vision of making digital assets available to all. 

According to the New York Department of Financial Service’s superintendent Linda Lacewell, granting BitLicense offers additional crypto alternatives to citizens as the state proceeds to rebuild and recover. Previously, Bakkt’s institutional Bitcoin custody obtained authorization from the Department of Financial Service in 2019. The charter granted to Bakkt permitted the firm to facilitate Bitcoin custody services associated with the asset’s futures contracts’ launch.

Established in 2018, Bakkt is one of the fastest-growing crypto companies. The company began by providing physically-settled crypto derivatives. Presently, it is operating on introducing a crypto payments app. The license’s approval appeared when Bakkt was preparing to go public with a black-check acquisition company merger, which might put a $2 billion valuation on the company. Furthermore, Bakkt has determined crypto plans that include facilitating a broader ecosystem in which consumers can spend Bitcoin in several stores. Last year, it tested a service with Starbucks, enabling consumers to spend their Bitcoin on coffee. But those weren’t direct Bitcoin payments, as they had to convert crypto into cash at the point of sale. 

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