Regulation
Cumberland DRW secures BitLicense for New York crypto operations
Cumberland DRW, a leading digital asset trader and liquidity provider, has obtained a BitLicense from the New York State Department of Financial Services (NYDFS) to allow the company to operate as a virtual currency company in the state.
We are pleased that the New York State Department of Financial Services has granted a Bit license to Cumberland New York. We are deeply committed to working with regulators to obtain the appropriate and necessary licenses and ensure that our business is compliant and aligned with regulations…
— Cumberland (@CumberlandSays) June 17, 2024
The BitLicense is a regulatory framework for cryptocurrency activities in New York introduced in 2015. Cumberland DRW expressed satisfaction with the NYDFS decision and plans to develop strong business relationships with institutional counterparties in New York. As one of the leading trading firms to hold a BitLicense, Cumberland DRW is poised to expand its presence in the New York cryptocurrency market.
The BitLicense program has played an important part in cryptocurrency regulation. Some argue that it could slow innovation and, therefore, slow economic growth, while others insist that it is necessary for certain regulations and to protect consumers in the cryptocurrency market.
Cumberland DRW’s parent company, DRW, is a high-frequency trading company based in Chicago. Earlier this year, Fidelity Investments selected Cumberland as one of the trading firms to handle bitcoin transactions for its bitcoin spot exchange traded fund (ETF).
The NYDFS has been actively working to improve the virtual currency landscape in New York. Recently, the department released new guidance on customer service obligations for virtual currency entities (VCEs) to improve transparency and efficient management of customer requests.
According to the adopted standards, to ensure customers have access to multiple options for submitting complaints and requests, VCEs must introduce relevant changes. They should also provide status reports and, more importantly, a time frame of expected results.
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