Bitstamp, a cryptocurrency exchange based out of Luxembourg, announced on its official website that the exchange was granted a BitLicense. This will allow Bitstamp to continue providing crypto trading services in the United States and improve the exchange’s overall presence in the country.
Linda A. Lacewell, Acting Financial Services Superintendent of New York State Department of Financial Services [DFS], stated,
“We are pleased to welcome Bitstamp to New York’s growing virtual currency marketplace. A regulated industry protects customers while supporting innovation and ensuring our financial services sector is a vibrant part of New York’s economy.”
The exchange is now authorized to offer services, providing its users with the ability to buy and sell Bitcoin [BTC] along with various other cryptocurrencies. The license also enables Bitstamp USA to facilitate transfers of funds onto the Ripple Network, issuing Ripple balances in USD, with other virtual and fiat currencies.
Bitstamp is one of the few exchanges that facilitate xRapid payment paths or Ripple Gateways, which provide an entry point into the Ripple Network. The announcement further hinted at the exchange being granted the license to use the XRPL decentralized exchange for utilization.
With the legal backing of the Financial Services, Bitstamp will now be able to issue fiat-backed and crypto-backed IOUs [tokens issued on the platform that are redeemable for a fungible asset such as USD, gold or crude oil].
Nejc Kodrič, CEO of Bitstamp, expressed his delight, stating,
“Bitstamp has always embraced regulatory efforts that focus on transparency and accountability to help expand the industry and bridge the gap between the traditional financial and cryptocurrency worlds.”
After the announcement, a Twitter user @Ticketothemoon, posted a query and asked,
“Wasn’t buying XRP from Bitstamp already an option in the U.S?”
Bitstamp responded to this query,
“You’re right, it was, and this license will enable us to continue providing crypto trading services and ramp up our presence in the US.”
XRP enthusiast, @XrpCenter gave its opinion on the announcement and stated,
“To be clear, this means that Bitstamp, as a separate and independent company, has been granted with an authorization to use the XRPL Decentralized Exchange to 1) Issue fiat-backed and crypto-backed IOUs. 2) Handle payments. It is not the XRPL, per se, what has been regulated.’
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XRP interest on the rise as analysis shows formation of a ‘quadruple bottom’
The cryptocurrency market has been subject to a significant bull run that has not only catapulted the prices of digital assets, but also their corresponding market caps. XRP, the third largest cryptocurrency, had more of a rollercoaster ride rather than the sudden surge enjoyed by Bitcoin, with the coin trading at a 6-month high, at press time.
A recent analysis conducted by DonAlt, the popular cryptocurrency enthusiast, pointed out the dips in the one-day chart of XRP. His tweet read,
A lot of interest in XRP. Kind of looks like a quadruple bottom / head and shoulders.
Not the biggest fan of longing those. If there is one lesson 2018 taught everyone is support is only support for so long.
I’ll be watching this one from the sidelines.”
There was also speculation that it was a good time to buy into XRP when there is a violent reaction at the lows, while going long previously was a risky decision. Previous readings of the XRP graph have shown that any squeeze in the XRP graph will result in a full retracement. Since May 2019, the cryptocurrency grew from $0.28 to the current trading price, which was more than a 100 percent increase.
At the time of writing, XRP was trading at $0.467, with a total market cap of $19.89 billion. The cryptocurrency was growing at a rate of 1.13 percent, with a 24-hour market volume of $42.57 billion.
XRP was in the news recently after its related application, XRP TipBot, came back online after a small downtime. Wietse Wind, creator of XRP TipBot, had tweeted,
“Oops! Sorry! Infrastructure blip. Really easy fix but I enjoyed an offline afternoon with my girls 😇 So I only found out after some time, when I checked my phone. Monitoring, messages, calls 😇 Social media tips went through during the downtime. Sorry!”
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