The New York State Department of Financial Services (NYDFS) has officially granted Cumberland, a cryptocurrency trading firm, a BitLicense, giving it the green light to operate as a virtual currency company.
In an announcement on June 17, Cumberland expressed its intention to establish strong trading partnerships with institutional New York counterparts using the BitLicense. The company is among the exclusive 33 firms listed on the NYDFS website that hold this license, and it proudly claims to be one of the few principal trading firms to have obtained it.
Since 2015, cryptocurrency firms operating in New York have been required to apply for a BitLicense to offer their products and services. However, critics like New York City Mayor Eric Adams have voiced concerns about the program, arguing that it hinders innovation and economic progress.
In related news, New York authorities have brought charges against Genesis Global Trading and crypto firm Gemini for allegedly deceiving investors through the Gemini Earn program. Genesis reached a settlement with the NYDFS in January, agreeing to pay $8 million and relinquish its BitLicense. The New York Attorney General’s office also settled with Genesis and Gemini, prohibiting them from conducting business in the state and offering a crypto lending service, respectively.
Before the United States Securities and Exchange Commission gave the green light for the listing and trading of a spot Bitcoin (BTC) exchange-traded fund on exchanges in January, Fidelity selected Cumberland as one of the trading partners for the investment vehicle. Operating in North America, Europe, and Asia, Cumberland has established itself as a prominent player in the cryptocurrency trading industry.
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