The provision of BitLicense permits SoFi to offer users the opportunity to purchase and sell BitCoin, and various other virtual cryptocurrencies.
New York Department of Financial Services Giving Their 24th BitLicense
The New York Department of Financial Services permitted its twenty-fourth BitLicense today to SoFi, an online finance and loan start-up businesses, allowing the finance firm the ability to operate cryptocurrencies within the state. The approval from the state permits SoFi to offer its consumers the ability to purchase and sell BitCoin, along with various other virtual cryptocurrencies, in exchange for USD; it is also possible to reverse act the financial operation as well.
The virtual coins that SoFi has been permitted to financially exchange are: BitCoin, LiteCoin, BitCoin Cash, Stellar Lumens, Ether Classic, and Ether. There is a possibility that there will be more cryptocurrencies to be transacted in the future.
The regulator mentioned in a statement, “The Department’s approval of SoFi’s virtual currency and money transmitter licenses provides consumers with more choices in a continuously evolving global financial services marketplace.”
The financial services and loans company, which is headquartered in San Fransisco, has already established a relationship with the exchange Coinbase that allows crypto-trading elements into its SoFi platform for investment. This mostly targets investors of a younger demographic through it student loan consolidation financial service. The partnership between SoFi and Coinbase permits users of SoFi to monitor any changes and movements in the cryptocurrencies’ prices.
The CEO of SoFi, Anthony Noto, stated that “We’re thrilled to now be able to offer the trading of cryptocurrency, in addition to active and automated investing, as part of SoFi Invest in New York State, in addition to the full suite of SoFi products that help our members borrow, save, spend, invest, and protect their money.”
BitCoin and CryptoCurrencies in the United States
With BitCoin and cryptocurrencies, it is a very complicated industry and the approval to crypto-trade is very arduous, unlike trading with other instruments. In the United States, it is a state to state basis, where most financial firms have to refer to the department of financial services of the states. This is the first step in taking, in order to be able to get an approval to conduct cryptocurrency operations, of buying and selling cryptocurrencies or virtual coins in exchange for US Dollars.
However, slowly but surely, states are warming up more and more to cryptocurrencies, in order to make it more accessible in the United States, since crypto-trading has become very popular.