Bakkt secures BitLicense in New York

Digital currency trading platform Bakkt has been awarded a BitLicense in New York by local regulators, allowing the firm to offer virtual currency trading services to customers in the state.

The New York State Department of Financial Services (NYDFS) confirmed Bakkt’s licensing application this week, making it the latest firm to secure the exclusive license, under the regulatory watch of the NYDFS.

The agency said the license would now enable Bakkt to support customers in New York in buying and selling digital currencies and other digital assets.

“This license will allow Bakkt Marketplace to offer its New York customers the ability to buy and sell virtual currency and subject to DFS’s supervision of its licensed activities.”

In a statement published earlier this week, Bakkt CEO Gavin Michael said the award represents a “major milestone” for the firm in making its services more widely accessible across the state.

“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.”

The news comes just a matter of weeks after Bakkt confirmed it plans to go public via a SPAC arrangement, which would value the company at around $2.1 billion.

Bakkt is a subsidiary of Intercontinental Exchange, the firm behind the New York Stock Exchange. The company was founded in 2008 to allow users to engage in trading virtual currencies, futures for digital assets and other similar products in and around the digital currency space.

The New York BitLicense is highly sought after for virtual assets firms looking to do business in New York. As of June 2020, only 25 licenses had been approved to date, with firms requiring a license in order to trade in the state.

See also: CoinGeek Live panel, Regulation of Digital Assets & Digital Asset Businesses

YouTube video

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.