Eris Clearing, the clearing and settlement arm of ErisX, has been awarded the hard-to-come-by Virtual Currency License from New York's Department of Financial Services (NYDFS).
Announced Wednesday, the spot and derivatives marketplace joins a select group of well-known cryptocurrency firms including Coinbase, Robinhood and Bitstamp as well as crypto brokerage Tagomi that have all met the required NYFDS standards for the so-called BitLicense.
“We are pleased that the New York Department of Financial Services recognized our commitment to the high standards we borrowed from existing capital markets structures and applied them to the cryptocurrency space,” said Thomas Chippas, CEO of ErisX, in a press release.
In 2019, ErisX was also awarded a Derivatives Clearing Organization (DCO) license from the U.S. Commodity Futures Trading Commission (CFTC) for its futures market and clearinghouse. As a result, ErisX entities are licensed to operate in 47 states and jurisdictions, including New York.
Formally launched in June 2015, the BitLicense was designed by the NYDFS to provide a framework for companies looking to services relating to bitcoin and other cryptocurrencies such as trading or custody.
The NYFDS requires any businesses conducting cryptocurrency transactions with New York residents to be licensed to operate within the state even if the companies are based elsewhere.
Towards the end of 2019, the BitLicense came under review from NYDFS Superintendent Linda Lacewell, who said it was "good to take a close look" at the platforms operating in the emerging cryptocurrency industry and to reflect the changes to the space since 2015.
“DFS continues its commitment to fostering financial innovation in New York,” said Lacewell. “Today’s approval is another step in expanding virtual currency activities in the state and promoting New York’s support for financial innovation, which will be especially important as we work to reopen the economy of the world’s financial capital.”
Discussing the news, Chippas told CoinDesk: "Our work with regulators is always open and transparent, which allows us to build innovative products and services while still operating a compliant and safe business."
"Having recently announced alignments with Fidelity Investments and TradeStation Crypto we look forward to welcoming New York based individuals and institutions to the spot platform now that we are able to do so," he said.