The New York State Department of Financial Services (DFS) has approved the application of Tagomi Trading, a subsidiary of Tagomi Holdings, for a virtual currency licence. Tagomi, an institutional investor-focused crypto brokerage, has also been approved for a money transmission licence.
The company is now authorized to engage in money-transmission, trade routing and order-execution services for non-securities virtual currencies, including Bitcoin, ETH, Bitcoin Cash and Litecoin. In order to receive the licence, Tagomi had to respond to DFS questions about cybersecurity and its anti-money laundering practices.
“We are excited that DFS has approved our application as New York’s first agency brokerage for virtual currencies,” said Tagomi Trading CEO, Greg Tusar. “Our team of industry veterans has developed our order routing services with sophisticated clients in mind, and we look forward to expanding our presence with New Yorkers”.
According to Acting Superintendent Linda Lacewell, DFS is committed to fostering innovation and strengthening the competitiveness of New York’s burgeoning virtual currency sector.
“The Department’s approval of Tagomi’s virtual currency and money transmitter licenses provides consumers with more choice and more protection in a continuously evolving global financial services marketplace,” she said.
BitLicence Can Be Too Expensive And Is Daunting To Interpret
Tagomi’s BitLicense comes on the back of their recent $12 million funding round. The funding was led by the Yale-Backed Paradigm Fund, with collaboration from Pantera and other prominent clients.
Tagomi is the 18th company to receive a BitLicense, the statutory permit that authorizes companies to buy and sell cryptocurrency New York customers. The licence was introduced in 2015 in an attempt to regulate the crypto market, but it has always been controversial. The application process is considered to be expensive and a formidable undertaking, leading to some companies leaving the state, taking their business and money elsewhere.
Greg Tusar is delighted, saying: “We appreciate the DFS’s thorough review and careful approach to virtual currency market participants to make for a more transparent and equitable virtual currency landscape”.