Anchorage Digital Subsidiary Scores BitLicense from New York Regulators

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

December 16, 2024

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Crypto-friendly bank Anchorage Digital announced on Monday that its subsidiary received a BitLicense from New York’s Department of Financial Services (NYDFS).

The firm announced that with this license, its New York subsidiary will provide institutions in the city with secure and cost-efficient trading. It aims to roll out full capabilities by early 2025.

“Receiving a BitLicense is a major step forward for Anchorage Digital and the digital asset industry as a whole,” CEO Nathan McCauley said. “Bringing regulated and efficient crypto trading to clients based in New York marks the latest in our journey to build the best regulatory and technical stack for institutions in crypto.”

Anchorage Digital Joins Elite List of Firms Approved for Crypto Services in New York

With the BitLicense, Anchorage Digital said it can now legally provide regulated crypto trading services to New York-based institutions. Additionally, they can offer a secure trading environment with competitive pricing, reinforcing their value proposition to clients.

Anchorage’s acquisition of the BitLicense brings the total number of approved companies to 34 since the program began in 2015. This reflects growing acceptance and a clearer regulatory framework for crypto businesses in New York. The list includes major players like Bakkt, bitFlyer, BitPay, Bitooda and Coinbase.

Debate Over New York’s Crypto Rules Continues

The BitLicense has drawn mixed reactions from crypto enthusiasts. Critics argue that its strict requirements could stifle innovation or drive companies out of New York. However, by obtaining this license, Anchorage Digital shows its commitment to regulatory compliance and its strategy to serve institutional clients in one of the most regulated US crypto markets.

Despite calls for its amendment or repeal, New York continues to enforce the BitLicense to balance cryptocurrency innovation with consumer protection and financial system integrity. The NYDFS introduced changes like the “conditional BitLicense,” allowing newcomers to partner with established license holders for easier entry. However, these reforms have not fully quieted critics.

New York’s approach reflects a broader regulatory trend. Despite industry pushback, regulators remain hesitant to loosen oversight due to risks like money laundering and fraud. This strict enforcement also aligns with New York’s role as a major financial hub, where strong regulations are seen as vital to protecting its financial integrity and reputation.