Coinbase Custody receives New York state banking license
With New York being a financial capital of the U.S., it’s no surprise that one of the major crypto-related regulatory decisions approved on a state level has been taken here, in New York City.
On October 23rd, the state’s Department of Financial Services has officially announced that Coinbase has been approved for a license under the New York State Banking Law, and will operate as a Qualified Custodian. Coinbase Custody Trust Company is an institutional grade company providing secure storage for large amounts of cryptocurrencies. Under the state banking law, it will be held to the same compliance, rules and regulations as any traditional fiduciary custodial businesses.
It’s an important regulatory piece, which will allow Coinbase to provide more to its customers, including the ability to compliantly store more assets, and provide more features, like staking. What’s also important, under the New York State Banking Law, Coinbase will be considered a fiduciary.
According to the Coinbase Custody statement, they are committed to providing even more services tailored specifically to their customers’ unique needs, with more features and assets to be delivered in the coming months.
With the new license obtained by Coinbase, financial analysts anticipate more traditional financial institutions and hedge funds to enter and invest in the cryptocurrency space by the end of 2018.
“New York continues to be a leader in creating, fostering, and responsibly regulating a financial services marketplace that promotes innovation, safeguards the industry and protects consumers through strong supervision,” said Department of Financial Services Superintendent Maria T. Vullo. “Today’s approval further demonstrates that the state regulatory system is the best arena in which to responsibly supervise the growing fintech industry within a sound and compliant framework.”