Tagomi, a cryptocurrency brokerage firm backed by Peter Thiel, the Co-founder of Paypal received the BitLicense to operate in New York. The license has been issued by the Department of Financial Services (DFS) in New York, it one of the most stringent Financial Authorities of the world.
The firm will begin trading of four cryptocurrencies for now; they are Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC).
“The number of clients that opens up in New York is quite a substantial opportunity,” said Greg Tusar, Tagomi’s co-founder and CEO, “We definitely have a backlog of clients that we would like to onboard that we were waiting for this approval to move forward with.”
The BitLicesne is a certificate of approval from the DFS New York which allows the firm to trade in cryptocurrency on behalf of the customers in New York.
Tagomi’s Road to the BitLicense
Togomi is a cryptocurrency brokerage firm based out of New Jersey, which had to undergo a seven months long application process to procure the license. The department was concerned about the security, privacy and custody issues related to a cryptocurrency brokerage firm.
Tagomi plans to launch a wide of range of financial products built on cryptocurrencies. These include Margin Trading, Lending, and Call/Put options. The firm has raised a total of $27.5 million from three investors firms Paradigm, Pantera Capital and Peter Thiel’s Founders Fund.
DFS is committed to fostering innovation and strengthening the competitiveness of New York’s burgeoning virtual currency sector,” said Acting Superintendent Lacewell. “The Department’s approval of Tagomi’s virtual currency and money transmitter licenses provides consumers with more choice and more protection in a continuously evolving global financial services marketplace.”
Tagomi is the 18th firm to obtain the BitLicense to trade in virtual currencies in New York.
Do you think that the licensed firms would throw the non-licensed Exchanges out of the market with the on-going ‘fake volume data fiasco’?
Nivesh from Engineering Background is a full-time Crypto Journalist 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