June 13, 2016
Contact: Richard Loconte, 212-709-1691
DFS GRANTS VIRTUAL CURRENCY LICENSE TO XRP II, LLC, AN AFFILIATE OF RIPPLE
Four Virtual Currency Firms Have Now Received Approval by DFS to Operate in New York
Maria T. Vullo, Acting Superintendent of Financial Services, today announced that the New York State Department of Financial Services (DFS) has approved the application of XRP II, LLC, an affiliate of Ripple Labs, Inc., for a virtual currency license.
"DFS is pleased to continue to foster the growth of the New York virtual currency marketplace and industry through thoughtful and appropriate regulation,” said Acting Department of Financial Services Superintendent Maria T. Vullo. “DFS will continue to progress on licensing virtual currency firms while acting in the best interests of New York consumers.”
XRP II applied to DFS for a license to engage in virtual currency business activities in August, 2015. DFS conducted a rigorous review of that application, including but not limited to the company’s anti-money laundering, capitalization, consumer protection, and cyber security standards. As a limited liability company with a virtual currency license under the Financial Services Law, XRP II can begin operating immediately and is subject to ongoing supervision by DFS.
“Earning the BitLicense is an incredible validation of the institutional use of digital assets by DFS, one of the most influential state regulators,” said Ripple co-founder and CEO Chris Larsen. “With the BitLicense in hand, we look forward to working with our New York bank customers seeking to use XRP for liquidity and cost savings.”
In May 2015, DFS granted the first charter to a New York virtual currency firm, itBit Trust Company. To date, DFS has received 26 BitLicense applications, and has approved four virtual currency firms for charters or licenses.
In addition, DFS recently denied two applications for a virtual currency license. The companies who received application denial letters ordering them to stop any New York operations are Snapcard Inc. and OKLink PTE. LTD.
To view a copy of XRP II, LLC’s virtual currency license, please visit link.