Bitcoin futures trading platform (BTC), Bakkt has been awarded the coveted BitLicense by the New York State Department of Financial Services (DFS).
This development was announced by the Financial Services Superintendent Linda A Lacewell in a press release on Thursday. According to the report, the financial regulator had approved the application of Bakkt to hold virtual currency and money transmitter licenses in the state.
This will allow Bakkt Marketplace to offer cryptocurrency services to its New York customers and introduce more digital asset products. Bakkt Marketplace will also be subject to DFS supervision of its licensed activities within the state.
DFS chief Superintendent Lacewell stated that the regulator was proud to be at the forefront of financial innovations via placing adequate regulations.
“With new technology advancing every day, DFS is proud to be at the forefront of financial innovation through our continuous efforts to set the conditions for virtual currency companies to germinate and grow.”
She also stated that the approval of Bakkt offers more digital assets to the state of New York as it looks to recover from the Covid economic crises. “This approval provides additional virtual currency options to New Yorkers as the state continues to rebuild and recover.”
Bakkt CEO Gavin Micheal echoed similar sentiments and stated that the license was a significant milestone for the firm.
“This represents a major milestone to achieving our vision of making digital assets accessible to all, and we’re thrilled to continue driving innovation in this rapidly evolving industry, highlighted by the upcoming launch of the Bakkt App,” he said.
BitLicense a major boost for Bakkt
The BitLicense offered by the New York State Department of Financial Services is regarded as one of the premier licenses. It is well known that the application process is strict, and since it was launched in 2015, only 29 companies have been granted this license.
Achieving this milestone is a huge one for Bakkt considering the economic power of the state of New York at the international and regional level. The license shows that Bakkt has attained a level of security regarding its operations, which meets the expectations of regulators.
There was speculation in January 2021 that the company could be planning to go public. Bakkt is regarded as one of the biggest crypto derivatives platforms globally and is a significant stakeholder in the crypto industry.