The New York State Department of Financial Services, the Bitlicense regulator, has authorized GMO to issue stablecoins-linked in US dollars and Japanese yen. The latter “will be the first of its kind available to the public”. To date, the regulator has issued 27 charters and licenses for companies engaged in crypto business.
First Regulated Yen Stablecoin Approved in NY
The New York State Department of Financial Services (DFS) has granted a charter under New York banking law to GMO-z.com Trust Company Inc., a subsidiary of Japanese giant GMO Internet. This allows the company to operate as a limited liability trust company, the regulator announced Tuesday, elaborating on:
With DFS approval, GMO is authorized to issue, manage and exchange Japanese yen and US dollar-linked stablecoins in New York. The Japanese yen stablecoin will be the first of its kind available to the public.
“Including the charter granted to GMO, DFS has to date approved 27 charters and licenses for companies engaged in virtual currency business activities,” the announcement continues.
GMO-z Trust Company President Ken Nakamura commented, “We are breaking new ground with our move to issue the first regulated JPY-linked stablecoin, which many see as a safe haven. But we are also pioneers and innovators in this space looking to build new applications of blockchain technology that transform our relationship with traditional financial services. “
The DFS began licensing companies dealing with cryptocurrency businesses in 2015 and has since been revise her crypto regulatory approach. “This includes streamlining the process for businesses to adopt new coins through a self-certification framework and coin greenlist, using the department’s conditional licensing authority, and providing new clarity about DFS processes and expectations to applicants and licensed entities, ”the regulator described.
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