Financial Services Superintendent Maria T. Vullo today announced that the New York State Department of Financial Services (DFS) has approved the application of bitFlyer USA, Inc., for a virtual currency license. With this new DFS license, bitFlyer USA is approved to offer an online digital currency exchange and trading platform as well as provide custodial wallet services for the Bitcoin digital currency.

“As New York’s financial services regulator, DFS’s mission is to encourage innovation while protecting markets and consumers,” said Superintendent Vullo.  “As the virtual currency market expands, New York will continue to support technological innovation while enforcing strong state-based regulation.”

DFS has conducted a comprehensive review of bitFlyer USA’s application, including the company’s anti-money laundering, capitalization, consumer protection, and cyber security policies. bitFlyer USA, which is subject to ongoing supervision by DFS, offers services for buying, selling, sending, receiving, and storing bitcoin. bitFlyer USA is a wholly-owned subsidiary of bitFlyer, Inc., a Japanese corporation formed in 2014. bitFlyer is also licensed by the Japan Financial Services Agency.  bitFlyer has also been registered as a virtual currency exchange by the Japan Financial Services Agency.

“The BitLicense propels bitFlyer forward in our mission to make the world simpler through blockchain. DFS’ rigorous application ensures only the most safe and compliant firms can operate in New York,” bitFlyer CEO Yuzo Kano said, “the US team has worked closely with DFS through the application process and we appreciate the relationship we’ve built with them.”

DFS has approved six firms for virtual currency charters or licenses, while denying those applications that did not meet DFS’s standards. In addition to bitFlyer USA, DFS has granted licenses to Coinbase Inc., XRP II and Circle Internet Financial, and charters to Gemini Trust Company and itBit Trust Company.