Welcome to the Club
By receiving this license, Tagomi is now legally allowed to trade in digital assets in the state of New York. Since its inception in 2015, the BitLicense has acted as a gatekeeper to the crypto industry in New York and works to streamline business practices among those in the industry.
So far, the BitLicense has been granted to a total of 18 firms which include Robinhood and Cottonwood. The license is given to technology-based money transmitters under New York’s money transmitter law, online lenders under New York’s banking law, and virtual currency exchanges under New York’s financial services law.
Now that Tagomi has gotten their license and can operate under the New York legal system, it will be interesting to see what products or services they launch next.
Their management has stated that they are happy to have been approved and that their getting the license is in line with their principle of transparency.
“Today’s announcement reflects Tagomi’s commitment to our customers: We prioritize transparency and fairness with our services. We look forward to working with the DFS as we grow our business and cement our presence with New York’s client base,” said General Counsel of Tagomi Trading LLC, Dhawal Sharma.
A Mixed Bag
The BitLicense has not been without controversy since its inception, mostly due to the fact that it acts as a gatekeeper of sorts.
Some crypto purists are against the idea of a government body restricting who can and cannot deal in cryptocurrency. After all, was crypto not founded on the principle of giving freedom to its users?
In the same, a lack of oversight in the industry creates a breeding ground for crime, and this could drive away investment. By giving out licenses to crypto operators, business practices can be kept under watch, crime can be prevented, and the industry can enjoy support form the government.
Either way, the BitLicense seem to be here to stay.