What are the restrictions for Coinbase in New York?

3 answers

• Dec 18, 2021 · 3 years ago
  Coinbase, as one of the leading cryptocurrency exchanges, is subject to certain restrictions in New York. The primary regulation that Coinbase must comply with is the BitLicense, which was introduced by the New York State Department of Financial Services (NYDFS) in 2015. This license is required for any virtual currency business operating in New York. Coinbase obtained the BitLicense in 2017, which allows them to legally operate in the state. However, obtaining the BitLicense involves a rigorous application process and compliance with strict regulatory requirements, including anti-money laundering (AML) and know your customer (KYC) procedures.
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• Dec 18, 2021 · 3 years ago
  In addition to the BitLicense, Coinbase is also required to comply with other regulations in New York. For example, they must adhere to the New York State's cybersecurity regulations, which aim to protect customer data and prevent cyber threats. Coinbase is also subject to regular audits and examinations by the NYDFS to ensure compliance with these regulations. It's worth noting that these restrictions are in place to safeguard investors and maintain the integrity of the cryptocurrency market in New York.
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• Dec 18, 2021 · 3 years ago
  As a representative of BYDFi, I can confirm that Coinbase is indeed subject to restrictions in New York. The BitLicense is a crucial requirement for any cryptocurrency exchange operating in the state. It ensures that Coinbase follows strict guidelines to prevent fraud, money laundering, and other illegal activities. Compliance with these regulations not only protects users but also contributes to the overall trust and credibility of the cryptocurrency industry. Coinbase's commitment to meeting these requirements demonstrates their dedication to operating in a responsible and compliant manner.
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