Crypto Trading Firm Cumberland Acquires New York's BitLicense

Cumberland DRW, a major digital asset trader and liquidity provider, said on Monday that the New York State Department of Financial Services (NYDFS) granted its New York-based entity a virtual currency license called BitLicense.

"We are pleased that the New York State Department of Financial Services has granted Cumberland New York a BitLicense," the company's official X account posted.

"As one of the only principal trading firms to hold a BitLicense, we look forward to strong trading relationships with institutional New York counterparties," the company added.

BitLicense is New York's landmark regulation for cryptocurrency-focused businesses put in place in 2015. While the regime spearheaded efforts to regulate the emerging crypto industry on a state level, it has attracted criticism over the years from market participants for stifling innovation, while the state's comptroller raised concerns earlier this year about the agency's auditing process.

Cumberland is a subsidiary of Chicago-based high-frequency trading company DRW. Earlier this year, Cumberland was one of the trading firms that were chosen by Fidelity Investments to buy and sell bitcoin (BTC) for Fidelity's spot bitcoin exchange-traded fund (ETF) that started trading in January.