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New York Grants Fifth-Ever BitLicense to Crypto Broker Genesis Global Trading

Last Updated March 4, 2021 5:07 PM
Josiah Wilmoth
Last Updated March 4, 2021 5:07 PM

Cryptocurrency brokerage firm Genesis Global Trading has become the latest firm to receive a BitLicense from the state’s financial regulatory.

The New York-based Genesis on Thursday announced that the state’s Department of Financial Services (NYDFS) had approved its application, making it one of a handful of firms to receive a BitLicense, which formally allows cryptocurrency businesses to operate in the state of New York.

The firm, which is also registered as a broker-dealer with the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA), operates an over-the-counter (OTC) cryptocurrency trading desk that serves institutional traders.

Previously, Genesis had operated under a “safe harbor” provision that allows BitLicense registrants to operate in the state while their NYDFS applications are pending.

“We are very pleased that DFS has approved the Genesis Global Trading BitLicense application,” said Michael Moro, CEO of Genesis Global Trading. “Although we have operated under a safe harbor provision in recent years, today’s decision is an important step forward and reaffirms the robust compliance measures we have enacted as an established trading partner.”

“New York continues to lead the nation in regulating the growing fintech industry,” said NYDFS superintendent Maria T. Vullo in a separate statement. “These approvals demonstrate DFS’s commitment to protecting consumers and the virtual currency market while encouraging innovation, such as the expanded use of blockchain, and providing strong regulatory oversight to new and existing market participants.”

Genesis becomes just the fifth firm to receive a BitLicense under New York’s controversial cryptocurrency regulation framework, which was finalized in 2015 and forced most cryptocurrency exchanges and trading firms to exit the state in what became known as the “Great Bitcoin Exodus.”

Other BitLicense recipients include Coinbase, bitFlyer USA, Ripple subsidiary XRP II, and Circle Internet Financial. Gemini Trust Company and Paxos have received NYDFS charters but have not yet been granted BitLicense approval.

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