Bakkt Becomes the 29th Consecutive Company to Receive BitLicense Approval by NYDFS
Bitcoin has blown out of proportion in only one year. While the tech-savvy bunch is obliged to have stakes and make bets in the cryptocurrency arena, the BTC popularity remains a betting game for most retail investors. Even the inhabitants of the biggest metropolitan of the world, NYC, tend to shy away from crypto investment due to a lack of regulations and accountability framework.
However, a trend of legislation for crypto services firms like Bakkt can be seen on the rise. The New York State Department of Financial Services (NYDFS) has granted its 29th BitLicense to Bakkt-a Bitcoin futures trading platform. This move by NYDFS provides more confidence to investors as the state is striving to rise from the economic flotsam of 2020.
Need for better Crypto Regulations in the biggest Potential Markets
Gavin Micheal, the CEO of Bakkt, has also shared the firm’s plans to become publicly listed and launch its trademark mobile application by the name of Bakkt App. With the decree of BitLicense, the crypto trading company would be able to facilitate potential customers in New York to buy and sell crypto assets. Superintendent Lacewell from NYDFS announced that a growing number of digital asset firms require legislation to prevent malicious activities from bad actors.
BitLicense is a great tool created by NYDFS to streamline and condition virtual currency companies by implementing state-backed financial innovations. Gavin believes that the approval of BitLicense would aid the company in making digital assets more accessible for a wider audience. The NYDFS BitLicense grant’s timing could not be better as Bakkt is currently completing a merger with a special acquisitions company (SPAC).
Adding more Investors to the Crypto Asset Trading
Bakkt Holdings Inc. is a purely crypto-based trading enterprise that has been able to list at the New York Stock Exchange after going public. Since the year 2015, the NYDFS has managed to issue BitLicenses to companies like XRP II (Ripple Labs), Coinbase, Bitstamp USA, Coin-source (Texas), Square Inc., and Eris Clearing, LLC. Some foreign crypto trading companies like HongKong based XAPO, and Tokyo-based bitFlyer has been able to do well in NYC after getting approved for BitLicense.
The Bitcoin futures platform was launched by Intercontinental Exchange (ICE) in 2018. The crypto-assets trading platform would soon become a public-listed company with an enterprise value of over $2 billion. According to the newly appointed leadership of Bakkt, the company aims to bring more transparency and ease of access to the average consumer by introducing user-friendly tools to manage and evaluate crypto assets.