ErisX, a Chicago-based spot and futures markets operator with a subsidiary that deals in the trade of cryptocurrencies is the latest recipient of the highly coveted BitLicense.
Launched in 2015, the BitLicense was introduced by the New York Department of Financial Services as a way to regulate any business that was interested in offering virtual currency services in the state of New York.
The BitLicense signifies that the recipient has adhered to a vast range of high restrictive measures to ensure the safety of its traders. Since its launch, only 19 businesses have been granted including Coinbase, Bitstamp, Square, BitPay, Circle, Ripple, and Tagomi.
ErisX now becomes the 19th firm to receive the license allowing it to offer its spot and futures markets to traders based in New York.
“We are pleased that the NYDFS recognized our commitment to the high standards we borrowed from existing capital markets structures and applied to the cryptocurrency space,” ErisX CEO Thomas Chippas said in a statement on Wednesday. “Our technology stack, as well as regulatory framework, operations, and transparent marketplace, are building blocks from the established commodity markets bringing familiarity, reliability, and conventionality to the crypto markets.”
Eris Exchange has been in operation since 2011 as a broker of the traditional assets market. ErisX was introduced to cater to the virtual assets markets. Last year, the exchange received a CTFC issued Derivatives Clearing Organization (DCO) license which would complement its already acquired Designated Contract Market (DCM) received back in 2011.
The two previous licenses allowed the company to offer its services in 47 US states including New York. However, it was unable to offer virtual asset services without the BitLicense.
The NYDFS Superintendent Linda A. Lacewell in a statement published by the agency yesterday said that the “DFS continues its commitment to fostering financial innovation in New York.” She also added that,
“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.”
The NYDFS also granted ErisX a money transmitter license together with the BitLicense. The agency said that these licenses will “enable Eris Clearing to offer New York customers the ability to buy and sell virtual currency on the ErisX platform. Eris Clearing also serves as a clearing entity for the virtual currency futures contracts bought and sold on ErisX.”
ErisX now becomes the first company to receive the BitLicense this year. Last year, following one of the most “generous” stints of the agency issuing 8 licenses, Superintendent Lacewell proclaimed that it was time to review the license requirements to address the changing needs of the cryptocurrency landscape. If the department changed the requirements, ErisX would then become the first to receive the license under the new requirements.