BitFlyer gets US license

The New York Department of Financial Services (DFS) has granted one of the leading Tokyo-based crypto exchanges bitFlyer a BitLicense to operate in United States as a ‘custodial wallet’ services for bitcoin or a secure online address to hold Bitcoin.

BitFlyer can now operate the exchange in 41 states. It will trade only bitcoin/USD pairs in the U.S. exchange only supporting deposit and withdraw via bitcoin and USD wire transfer. Users will be able to initially deposit and withdraw a limit of up to $2,000 in bitcoin per day and trade up to $3,000 in bitcoin per day. In addition, it will have several customer verification levels including name, address, email and cell phone verification.

The exchange market will expand to include other alt coins later.

“Our expansion and upcoming cross-border trading addresses a huge unmet need in the U.S. by institutional traders looking to access large amounts of liquidity across multiple virtual currency markets,” said bitFlyer USA’s chief operating officer, Bartek Ringwelski, in a statement.

DFS Superintendent Maria T. Vullo said in a statement that DFS will support and encourage technological innovation as the virtual currency markets expands.

BitFlyer, the largest exchange market in Japan controls a daily Bitcoin trading volume of over $300 billion according to latest data and is among the best exchanges in the world. It offers spot trading and trading on margin, with a leverage of 1:15, and has traded more than $100 billion in virtual currencies so far this year.

In U.S., BitFlyer will compete with Coinbase that has BitLicense to operate 46 states with its GDAX platform and Gemini which has permission to operate in 46 states in U.S. Other exchanges with permission to operate in this market include XRP II, and Circle Internet Financial.

BitFlyer wants to expand its services to alt coins including Litecoin, Ethereum, Ethereum Classic, and Bitcoin Cash from next year.