Coinbase announced the expansion of support for three cryptocurrencies in the state of New York. The exchange has often avoided adding support for cryptocurrencies in the state. This is because of the stringent laws in place at the state.
A BitLicense is necessary for conducting operations in New York. The state’s financial authority, NYDFS, had imposed these regulations in 2015.
Moreover, the regulators also supervise the cryptocurrencies that are launched on these platforms for trading.
Coinbase announced support for Stellar, Chainlink, and Algorand for its’ users in New York. The cryptocurrencies will be available both on coinbase.com and Coinbase Pro.
Stellar Lumens (XLM) is now available to Coinbase users who are New York residents. New Yorkers can now log in to buy, sell, convert, send, receive, or store XLM on https://t.co/bCG11KMQ6s or using our iOS and Android apps. https://t.co/gArFJPP6K7 pic.twitter.com/eTtVaH9JdT
— Coinbase (@coinbase) September 25, 2019
NYDFS Feeling Pressure from Lawsuit?
The NYDFS is facing a lawsuit filed by entrepreneur Theo Chino and his company Chino Ltd. to abolish BitLicense. The process is exclusive only for the state of New York, and the costs of procurement are $50,000-$100k. Chino alleged that the process is ‘cumbersome and expensive.’ Furthermore, these restrictions are exclusive only in NY.
While Coinbase had already procured the license in January 2017, the process of addition of cryptocurrencies was still restricted.
The State financial authority also moved to a new division under Superintendent Linda Lacewell in July this year. The new division has been made “responsible for licensing and supervising virtual currencies.” Moving on, the authority seems to be growing adaptive towards them.
Stellar [XLM] is trading 4.79% higher on a daily scale. Nevertheless, XLM has also broken below $0.06 as the altcoins continue to feel the pressure.
Besides, Chainlink [LINK] has been one of the best performing cryptocurrencies in the past few days. As the entire market plunged, LINK was rather stable w.r.t. USD. However, Algorand [ALGO] has faced the brunt of the fall on 25th September.
Do you think that increasing adoption on exchanges can revive the altcoins? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com