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NY Regulator Licenses Fidelity for Bitcoin Trading and Custody

Fidelity Investment’s digital currency arm has been licensed by the New York Department of Financial Services to operate a platform on which individuals and institutional investors can store, purchase, sell, and transfer bitcoin. The regulator also revealed that it has to date approved 23 charters or licenses for firms engaged in crypto activities.

Also read: US to Strictly Enforce Crypto Rules Similar to FATF Guidelines

Fidelity’s New Crypto License

The New York State Department of Financial Services (DFS) announced Tuesday that it has granted a charter under the state’s banking law to Fidelity Digital Asset Services LLC (FDAS) to operate as a limited liability trust company in the state of New York. The Bitlicense regulator detailed:

DFS has authorized FDAS to provide a virtual currency custody and execution platform, on which institutional investors and individuals can securely store, purchase, sell, and transfer bitcoin.

Following the DFS announcement, FDAS explained, “We look forward to making our custody and trade execution services available to firms based in New York.” The firm added, “We have experienced a high interest level from these firms and anticipate that their increased involvement in this industry would enable more activities and development across the spectrum.”

NY Regulator Approves Fidelity to Launch Crypto Trading and Custody Platform

“The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets,” FDAS COO Michael O’Reilly claims. “The designation as a New York trust company under the supervision and examination of the DFS builds on the credibility and trust we’re establishing amongst institutions and other market participants.”

FDAS is a subsidiary of Fidelity Investments, one of the world’s largest financial services providers with more than $7.2 trillion in client assets under administration and over 1.3 million trades processed each day, according to its website. Established in October last year, the digital asset subsidiary aims to create a full-service enterprise-grade platform for storing, trading, and servicing eligible digital assets. Tom Jessop, president of Fidelity Digital Assets, said in March that his company had been adding institutional investor clients such as hedge funds and family offices, but noted that certain aspects were still a work in progress.

23 Approvals so Far

Prior to the charter granted to Fidelity, the DFS had issued 22 others since it began approving crypto businesses in 2015. The regulator revealed:

Including the charter granted to FDAS, to date DFS has approved 23 charters or licenses for companies engaged in virtual currency business activities.

The last company that the DFS approved before Fidelity was Bakkt Trust Company LLC. The company was granted a charter under the state’s banking law in August and proceeded to launch regulated bitcoin futures on the NYSE.

NY Regulator Approves Fidelity to Launch Crypto Trading and Custody Platform

Several other firms have been approved by the DFS this year to operate crypto businesses. In September, the regulator green-lighted the first gold-backed digital currency in the state. Paxos, formerly Itbit, was approved to offer three asset-backed tokens: Paxos Standard (PAX); PAX Gold, an asset-backed token pegged to gold; and BUSD, an asset-backed token pegged to the U.S. dollar.

Furthermore, the DFS also approved Seed Digital Commodities Market, Zero Hash, Bitstamp, and Tagomi Trading this year. One company was denied, however. In April, the regulator rejected Bittrex’s applications to engage in crypto and money transmission activities in the state of New York.

What do you think of Fidelity’s crypto services and all the companies approved by the DFS? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Kevin Helms , 2019-11-20 05:30:54 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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