Fortunately, the continued loss in value for cryptocurrencies at exchanges in the past week does not appear to have an impact on regulatory processes. In fact, there has been progressing, as the guidelines have been tweaked sufficiently to allow Paxos Trust Company to commence OTC trading, by the New York Department of Financial Services (NYDFS).
The premier organization has permitted Paxos to commence trade beginning June 14. The cryptocurrencies that Paxos can use are Ethereum, Bitcoin Cash, Litecoin as well as Stellar Lumens for OTC trade in itBit digital asset exchange.
New York Department of Financial Services setting new trends
In a move that was welcomed by the crypto trading community, NYDFS permitted four large cryptocurrencies to trade on the OTC trading platform.
The enlisted trading company is Paxos Trust Company, which is controlled by Gemini Trust Company (which is owned by Winklevoss, the Facebook founding twins) and Coinbase Inc. The exchange will offer over eight cryptocurrencies to be traded, under the license of the NYDFS charter for virtual currency.
The NYDFS is re-positioning itself up as a regulatory body which supports the ecosystem for financial technology. With new grants coming its way, it has looked at innovation in the financial markets and embracing it to achieve maximum trading gains.
The Superintendent-in-charge of the services, Maria T.Vullo, says that “Today’s actions represent New York’s continued commitment to creating a thriving, global fintech marketplace. Through strong and thoughtful regulatory oversight by DFS, consumers and the virtual currency market alike will continue to benefit.”
One of the first companies to become an exchange was itBit Exchange in 2012, and it sought regulatory approval before launching their services in public, so as to ensure they operated with legitimacy.
Paxos happy
The approval by the regulatory body has set the transactional services company, Paxos in a happy space. CEO, Charles Cascarilla says, “This is an important milestone for itBit as we create a broader platform for crypto asset investors… Regulatory oversight and security have always been at the forefront of building our platform. We are thrilled to be able to offer these new services to our customers.”
Moving forward from its own 2012 debut on the exchange scenario, itBit will offer new assets. To strengthen the entire gamut of services the company offers, it has sought to launch escrow, obtain custody and also address OTC trading services, apart from the top four currencies which are capped over $70 in the markets.
