FTX US, the crypto exchange, has applied for a trust charter with the New York Department of Financial Services (NYDFS) to operate in the state.
It has been reported that FTX US said it had applied to form a limited purpose trust company with New York's financial services regulator in an effort to offer its products and services to local users. Pending regulatory review and approval, the licensed trust will be run by Fidelity Investments veteran Marissa MacDonald, who will assume the role of chief compliance officer.
However, crypto firms seeking to operate in New York state have different paths toward regulatory approval. One method is to apply for a trust charter, as Coinbase and BitGo have done, for offering crypto custody services. The other is to apply for a BitLicense, a route available since 2015.
The report said that according to the NYDFS, the aim of BitLicense is that New York residents have a “well-regulated way to access the virtual currency marketplace.” New York City Mayor Eric Adams criticized the initiative in April, claiming requiring crypto firms to apply for a license makes the state “less competitive.”
Thus, in January, FTX US reached an $8 billion valuation following a $400 million funding round. FTX’s global exchange followed with its own $400 million raise later that month, raising its valuation to $32 billion.