NYDFS Approves BitLicense for Anchorage Digital’s New York Subsidiary

On December 16, 2024, Anchorage Digital, a cryptocurrency-friendly bank, announced that its New York-based subsidiary has been granted a BitLicense by the New York Department of Financial Services (NYDFS). This approval marks a significant milestone for Anchorage Digital, as it now joins a growing list of companies licensed to operate in New York under the state’s stringent cryptocurrency regulations.
The BitLicense, which will take effect in 2025, allows Anchorage Digital to offer regulated crypto trading services to clients based in New York. In a statement, CEO Nathan McCauley emphasized that the license would enable the firm to provide "regulated and efficient crypto trading" to its New York clientele.
Despite the announcement, as of the publication date, Anchorage was not yet listed on the NYDFS website's list of regulated entities. Since the launch of the BitLicense program in 2015, the NYDFS has approved 34 companies to offer crypto services in the state, with Anchorage being the latest addition to the roster.
The BitLicense program has faced criticism from some in the crypto industry, who argue that the regulatory requirements are overly restrictive. However, many high-profile firms, including Circle, Coinbase, and Gemini, have successfully obtained BitLicenses and operate in New York under the framework. In contrast, Genesis Global Trading was forced to surrender its BitLicense in January following a settlement with the NYDFS related to allegations of fraud in connection with the Gemini Earn program.
New York has long been a hub for the cryptocurrency industry, drawing numerous companies due to its robust regulatory environment. However, it is also a focal point for enforcement actions by U.S. authorities against crypto firms and individuals. In recent months, New York City Mayor Eric Adams, who took office in 2022, has been vocal in his criticism of the BitLicense program, describing it as "stifling" to the industry. The mayor has also made headlines for his personal Bitcoin holdings, which have seen significant growth since he made headlines by accepting his first three paychecks in cryptocurrency.
As Anchorage Digital embarks on its new journey in New York, the decision underscores the growing regulatory landscape surrounding cryptocurrency in the state, as well as the continued interest in compliance and security within the digital asset market.
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