New York state’s financial regulator is about to issue “bitlicenses” to Coinbase and Ripple Labs, allowing the San Francisco-based bitcoin companies to operate in the state.
The New York State Department of Financial Services recently received applications from both companies, according to the regulator’s weekly report in late April. Now, an anonymous source close to the matter confirmed to Reuters that the requests will be approved, though the source did not say when the approvals would be announced.
Bitcoin is an internet-based “cryptocurrency” that allows for fast and anonymous transfer of funds among peers worldwide without using intermediaries. If the licenses are granted, Coinbase and Ripple Labs (the latter of which operates under the name XRP II) would become the second and third virtual currency companies allowed to operate legally in New York.
“We are committed to being fully compliant with all state and federal laws and applied for the license to ensure we remain so,” a Ripple spokesman told Reuters.
Last week, the regulator approved the application of Gemini Trust Co., which began the approval process in September. Gemini Trust was founded by Cameron and Tyler Winklevoss, the Olympic rowing twins from Harvard who famously sued Mark Zuckerberg claiming the