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New York Grants SoFi License to Provide the State with Crypto Trading Services

The New York State Department of Financial Services (NYDFS) recently approved SoFi Digital Assets’ application for a BitLicense.

A press statement from the NYDFS revealed that SoFi was able to secure two licenses, one for transmitting money, and the other, BitLicense, for working with virtual currency. They grant the California-based company the opportunity to provide crypto trading solutions to its clients in New York.

Six Virtual Assets

SoFi is also sanctioned to support six virtual assets which include Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Ethereum Classic (ETC), Litecoin (LTC), and Stellar (XLM).

The press statement also highlighted the NYDFS’ ongoing drive to push for innovation in the state’s cryptocurrency ecosystem. Linda Lacewell, an NYDFS supervisor, said the approval of SoFi’s licenses will give consumers more options in the constantly evolving financial services market.  

New York is known for its measured and thorough method of reviewing applications for BitLicense. It ensures that companies follow its stringent standards on consumer protection, fraud prevention, and security.

The regulatory body has only approved of 24 trust charters or virtual currency licenses since 2015. SoFi’s license is included in that rarefied company.

SoFi CEO Anthony Noto said their approval by the NYDFS is proof of the company’s commitment to earning the regard and trust of stakeholders and regulators as they attempt to give investors a wider range of services and products.

SoFi’s move to apply for a BitLicense was reportedly prompted by customer demands. According to Noto, they always prioritize their members’ interests. This entails providing them with what they want, like the cryptocurrencies in SoFi Invest, and protecting them via strong regulatory structures, like the one provided by the NYDFS.

Noto also said they’re thrilled at being able to provide their clients with the option to trade using digital currency. He added that this new service is a welcome part of the active and automated investing that SoFi Invest offers. The financial services company also has an extended suite of products that can assist members who want to borrow, spend, save, invest, or safeguard their money.

No-Fee Crypto-Trading

The news of its BitLicense approval comes on the heels of SoFi’s introduction of a no-fee crypto trading to its SoFi Invest platform. The company, in conjunction with its partner CoinBase, launched the commission-free trading for ETH, LTC, and BTC back in September. The program allows clients to purchase the three major tokens without having to set up a crypto wallet. Meanwhile, SoFi will procure the digital currencies they need to meet customer orders from CoinBase.

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