The New York State Department of Financial Services (NYDFS) has officially granted Cumberland, a cryptocurrency trading firm, a BitLicense, allowing it to function as a virtual currency company.
In a statement on June 17, Cumberland announced its intention to establish strong trading partnerships with institutional New York entities under the BitLicense. Despite being one of just 33 companies on the NYDFS website with this license, Cumberland proudly stated that it is among the few principal trading firms to hold one.
Since 2015, cryptocurrency companies in New York have been required to obtain a BitLicense in order to offer their services and products. Some critics, such as New York City Mayor Eric Adams, have called for the elimination of the program, arguing that it hinders innovation and economic progress.
In related news, New York authorities have been pursuing legal action against Genesis Global Trading and the crypto company Gemini for allegedly deceiving investors through the Gemini Earn program. In January, Genesis agreed to pay $8 million and relinquish its BitLicense as part of a settlement with the NYDFS. Additionally, the New York Attorney General’s office reached settlements with both Genesis and Gemini, prohibiting them from operating in the state and providing crypto lending services, respectively.
Before the United States Securities and Exchange Commission officially approved the trading of a spot Bitcoin (BTC) exchange-traded fund on exchanges in January, Fidelity selected Cumberland as one of the companies to handle BTC trading for the investment product. Cumberland has a presence in North America, Europe, and Asia.
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Cumberland a cryptocurrency trading company obtains BitLicense in New York