Monday, 13 July 2020

Tagomi Receives BitLicense to Operate in New York

The state authority has granted the controversial license to 18 companies.

The Chicago-based blockchain startup has become the latest recipient of BitLicense from the New York Department of Financial Services (NYDFS).

Announced on March 27th by the New York agency, Tagomi Trading LLC has become the 18th crypto-related company to receive the controversial license. In addition to BitLicense, Tagomi has also received a money transmission license from the same authority.

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Commenting on the move, Linda Lacewell, the acting superintendent of the agency, said: “DFS is committed to fostering innovation and strengthening the competitiveness of New York’s burgeoning virtual currency sector. 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.”

Backed by Peter Thiel’s venture capital firm, Tagomi Trading, a subsidiary of Tagomi Holdings, is an electronic brokerage firm for crypto asset offering market execution, capital management, post-trading reporting, along with settlement and custodial services.

License to Operate

With this license, the Chicago-based company is allowed to offer trading services with digital currencies in the New York state area.

“We are excited that DFS has approved our application as New York’s first agency brokerage for virtual currencies,” Greg Tusar, CEO of the crypto brokerage firm, said. “Our team of industry veterans has developed our order routing services with sophisticated clients in mind, and we look forward to expanding our presence with New Yorkers. We appreciate the DFS’s thorough review and careful approach to virtual currency market participants to make for a more transparent and equitable virtual currency landscape.”

Recently, Tagomi secured $12 million in funding, which took the total raised capital to $28 million. The new notable investors in the company include Yale-backed Paradigm Fund and crypto focussed venture firm Pantera Capital.

BitLicense is one of the most controversial crypto licenses in the United States. After its introduction in 2015, the license drove at least 10 crypto-related companies out of business. However, the New York authority was generous to hand over the license to major crypto companies operating in the country including Circle, Ripple, Coinbase, and Robinhood.

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