Fidelity Digital Assets received a new license in order to operate in New York and offer services to individuals and companies in the state.
The information was released on November 19 by the Department of Financial Services (DFS) in an official press release.
Fidelity Digital Assets Receives NY License
As per the press release, the Superintendent of Financial Services Linda A. Lacewell announced that the DFS granted a charter under New York Banking Law to Fidelity Digital Assets. In this way, the firm can operate as a limited liability trust company.
New York is known as a very difficult jurisdiction for crypto-related companies to offer services to users. The crypto community considers that such hard rules for companies affect innovation in the space.
However, Superintendent Lacewell considers that this approval is further evidence that innovation and consumer protection can coexist in New York.
The DFS has authorized Fidelity Digital Assets to offer a virtual custody and execution platform for institutional investors and individuals to store, purchase, sell and transfer Bitcoin (BTC), the leading cryptocurrency in the market.
Michael O’Reilly, Chief Operating Officer for Fidelity Digital Assets commented about it:
“The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets.”
He went on saying that this designation as a New York Trust Company provides credibility and trust, which is highly needed to offer services to institutions and other market participants. In the future, they want to help the entire ecosystem grow and expand with better services and solutions.
This is a very important step for the whole cryptocurrency market considering Fidelity Digital Assets wants to onboard new institutional investors to the industry.
During the last few years, crypto enthusiasts and market participants have been waiting for institutions to enter the space and increase Bitcoin adoption. However, this didn’t happen or is happening at a very slow pace.
It is very important for Fidelity Digital Assets to have this new license and be able to operate in a very competitive market to offer solutions to larger clients.
4 elements of institutional-caliber operations for #digitalassets:
•Institutional Account Structures
•Risk Management Practiceshttps://t.co/NacvtR2yoV
— Fidelity Digital Assets (@DigitalAssets) November 19, 2019
Regulators around the world want to have control over the industry and be able to reduce the negative effects of volatility and lack of regulations could have con investors.
While New York has a very strict regulatory framework, other countries and jurisdictions are improving their legal systems to offer clear regulations to companies and participants.