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. Cumberland announced on June 17 its intention to establish strong trading partnerships with institutional counterparts in New York using the BitLicense. The company is among the limited 33 entities listed on the NYDFS website that possess this license, and it proudly claims to be one of the few principal trading firms to hold such authorization.
In New York, cryptocurrency firms have been mandated to obtain a BitLicense since 2015 in order to offer their services and products. Despite this requirement, critics like New York City Mayor Eric Adams have called for the elimination of the program, arguing that it hampers innovation and economic development.
In a related development, New York authorities have initiated legal action against Genesis Global Trading and crypto company Gemini for allegedly deceiving investors through the Gemini Earn program. Genesis agreed to a settlement with the NYDFS in January, agreeing to pay $8 million and forfeit its BitLicense. The New York Attorney General’s office also reached settlements with Genesis and Gemini, prohibiting them from operating in the state and offering crypto lending services.
Prior to the approval by the United States Securities and Exchange Commission for the listing and trading of a spot Bitcoin (BTC) exchange-traded fund on exchanges in January, Fidelity selected Cumberland as one of the firms to handle BTC trading for the investment vehicle. Cumberland operates across North America, Europe, and Asia.
In the world of cryptocurrency, it’s important to note that ‘Bitcoin Layer 2s’ may not truly qualify as L2s, and understanding this distinction is crucial for investors and stakeholders.