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MoonPay, known for its innovative infrastructure for purchasing and selling cryptocurrencies and non-fungible tokens (NFTs), has secured a massive regulatory breakthrough.
According to the latest X post, the New York Department of Financial Services has granted the fintech company a Limited Purpose Trust Charter.
With this certification, MoonPay can now run a compliant MoonPay Trust Company in New York. The announcement reads:
MoonPay is now authorized by NYDFS to operate MoonPay Trust Company in New York. This expanded regulatory footprint unlocks digital asset custody and OTC trading for our financial infrastructure.
🗽 MoonPay is now authorized by NYDFS to operate MoonPay Trust Company in New York! 🍎 this expanded regulatory footprint unlocks digital asset custody and OTC trading for our financial infrastructure 🚀 NY BitLicense + Trust Charter = a new era of compliant innovation
NYDFS approval is crucial in MoonPay’s vision to dominate the crypto-institutions sector.
With over-the-counter trading and crypto custody, the firm can work with family offices, hedge funds, and wealth investors interested in compliant networks.
The regulatory move reflects MoonPay’s dedication to offering top-notch institutional-level crypto services.
OTC trading and custody are witnessing robust demand as businesses and large-scale investors seek a streamlined way to invest in digital tokens.
Reputable companies have showcased massive interest in virtual assets this year, with products like crypto exchange-traded funds (ETFs) and treasury witnessing notable interest.
Instead of pursuing the US Office of the Comptroller of the Currency for a federal charter, MoonPay went for state-level compliance.
New York is among the toughest regions for cryptocurrency businesses. The BitLicense, launched a decade ago, in 2015, introduced high standards of security, reporting, and operating in New York.
Furthermore, the Limited Purpose Trust Charter allows financial firms to operate at levels of traditional banks.
Thus, MoonPay’s dual compliance standing reflects its dedication to compliance, institutional preparedness, and transparency.
These perks can distinguish it from rivals as regulators tighten the grip.
Meanwhile, MoonPay is among the few cryptocurrency companies granted a BitLicense and a Trust Charter in New York.
Commenting on the development, Crypto America host and former Fox Business reporter Eleanor Terret said:
MoonPay now holds both a BitLicense and a Limited Purpose Trust Charter, a combo that only a handful of crypto firms (Coinbase, PayPal, Ripple, and NYDIG) have been able to secure under NY’s strict licensing regime.
Meanwhile, regulatory confidence is becoming vital as the cryptocurrency industry matures.
With NYDFS authorization, MoonPay is pioneering state-level compliance in the USA.
The post MoonPay boosts compliant institutional offerings with NYDFS approval appeared first on Invezz
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