Digital financial services firm Xapo has secured a virtual currency licence from New York Department of Financial Services (DFS).
The authorisation follows the regulator’s review of the firm’s anti-money laundering, anti-fraud, capitalisation, consumer protection, and cybersecurity policies.
The licence will enable Xapo to offer a digital wallet as well as a vault service, which allows users to store Bitcoin.
In addition, DFS also granted authorisation to Paxos Trust Company (formerly known as itBit Trust Company) to provide exchange and custody services for Ether, Litecoin, Stellar Lumens and Bitcoin Cash on its virtual currency exchange.
The company, which runs the itBit exchange, was previously authorised to offer services for purchasing, selling, sending, receiving, and storing Bitcoin under a virtual currency charter issued by DFS.
itBit CEO Chad Cascarilla said: “This is an important milestone for itBit as we create a broader platform for crypto asset investors. We are committed to the growth and evolution of this ecosystem and DFS approval allows us to offer more trading and custody services across a wider range of crypto assets.”
DFS superintendent Maria Vullo said: “Today’s actions represent New York’s continued commitment to creating a thriving, global fintech marketplace. Through strong and thoughtful regulatory oversight by DFS, consumers and the virtual currency market alike will continue to benefit.”