The crypto market is gaining in a good way as Bitstamp, a crypto exchange, gets a BitLicense to use XRPL’s DEX (Decentralized Exchange).
As such, the exchange will now be authorized to provide fund transfer services on Ripple’s RippleNet while posting balances in US dollars (USD) as well as a few other select cryptocurrencies and fiats like EUR, JPY, GBP, CHF, and AUD.
In a press release, Bitstamp argued that it is one of the exchanges that have made efforts to meet regulatory thresholds and made improvements in ensuring accountability and transparency in its operations.
For an exchange to be granted a BiLicence, it has to meet some strict policy evaluations, one of them being the measures put in place to ensure consumer protection. Bitstamp entered the crypto exchange business in 2011. The BitLicense was issued to Bitstamp by the New York State Department of Financial Services.
Enhance Market Presence
According to Bitstamp’s press release announcing the new development, the key goal for the licensing is to improve the exchange’s foothold in the US market. That’s especially more important as pertains the company’s collaboration with various interested institutional investors.
Granted, the news has been received quite well by the exchange’s customers and fans especially on twitter, with some coming out to offer their support and applauding the move.
Points To Note
First off, Bistamp will still be operating as independent entity but with access to the XRPL DEX. As such, the exchange will handle payments within Ripple’s XRapid payment solution and issue crypto as well as fiat-backed IOUs.
One important fact to note here is that the BitLicensig does not cover the XRPL regulation per se.