The state of New York just got another bitcoin company that can legally operate under the auspices of the state financial regulator's guidelines.
New York's state financial regulators gave Ripple Labs the approval it needed to secure its bitcoin license — BitLicense. With this license, Ripple is able to operate its digital currency services across the state. To gain approval, the New York State Department of Financial Services (DFS) had to review a series of standards that included anti-money laundering, capitalization, consumer protection and cybersecurity.
"DFS is pleased to continue to foster the growth of the New York virtual currency marketplace," Acting Department of Financial Services Superintendent Maria T. Vullo said in a statement.
New York has established itself as the first state in the U.S. to provide formal standards for virtual currency companies to follow in order to secure a license to operate a bitcoin services company. The guidelines were introduced in order to provide some stability and credibility to the bitcoin industry.
Ripple's service, XRP, gives financial institutions and banks a new tool to provide liquidity for foreign exchanges. Ripple, a company backed by Andreessen Horowitz, Google Ventures and IDG Capital Partners, filed its license under its corporate name XRP II LLC.