The operating licenses for companies engaged in the trade of cryptoactives are a precedent of great relevance for the increasing adoption of cryptography. This time it is the turn of the Genesis Global Trading firm, which provides services to institutional investors and large sums. The firm backed by the Digital Currency Group is now one of the five companies to which BitLicense of New York has been granted. To get an idea of this, the other companies that have received this license are Coinbase, Bitflyer and Circle.
Since May 17, 2018 Genesis Global Trading, is successfully linked to the select group of BitLicense holders. Operating since 2013, it operated under a ruling from the Department of Financial Services of New York (DFS), a regulation prior to BitLicense that allows startups to work in NY before obtaining their BitLicense.
Staying now 100% under legal operation, and specifically under the BitLicense, will allow Genesis Global Traiding to offer more solid services to large investors. Genesis Global Trading can now increase its offer of Bitcoin (BTC), Ethereum (ETH), Ethereum classic (ETC), Litecoin (LTC), Zcash (ZEC), among other altcoins, with the guarantee legal compliance, and the confidence that derives from it.
The team of Genesis Global Trading has expressed its satisfaction after obtaining the precious license.
“We are very pleased that DFS has approved the Genesis Global Trading BitLicense application, even though we have operated under the safe harbor provision in recent years, today’s decision is an important step forward and reaffirms the solid compliance measures that we have enacted as an established business partner.” His CEO stated, which we quoted textually.
BitLicense exists since 2015. It is a regulation formulated and approved by the Department of Financial Services of New York (DFS), but although you do not believe it, to date there are no more than five companies that have been granted BitLicense. Given this reality, it is natural that this regulation has been criticized by many for its unfriendly nature.
In fact, it is widely believed among entrepreneurs of the cryptographic world in New York that this regulation is too rigid for the survival of their companies. But it is foolish to think that any economic activity can be done without a minimum framework of regulation and control that ensures stability and transparency for all the actors involved. In other words, regulation for cryptography is a need that calls for a balance between development and security for investors.
Like any process of adaptation to an emerging technology and the realities that it generates, the point to achieve is balance. Nothing is done with a regulation that suffocates the ability to develop companies and platforms that can provide innovative solutions. But neither can you pretend to leave to their luck investors who in good faith place their monetary resources in projects that end up being a scam. It is necessary to understand that regulation must respond to the real experience of all the actors involved in the cryptographic activity. Thus all the parties win.
However it has to be said, with only five companies approved with this license in a period of three years, it is not possible to say exactly that BitLicense has been a success. Something has to be reviewed there.