Paxos received a conditional Federal Banking License from OCC - Bits Media

Cryptocurrency firm Paxos received a conditional license from the Office of the Comptroller of the Currency (OCC) to create a separate trust, federally regulated.

Paxos Chief Legal Officer Daniel Burstein (Daniel burstein) reported, that OSS approval will allow Paxos create a new trust company, which will be controlled at the federal level. It will function separately from the current Paxos Trust, working in New York for Bitlicense license, previously issued by the Department of Financial Services of the state of New York (NYDFS). Both trains will be controlled by the Paxos team.

This is not the first cryptocurrency company, received the approval of the regulator for banking in the country. At the beginning of the year, the OCC issued such a license to cryptocurrency firms Anchorage and Protego. For this, the leadership of these companies sought to transform their structure. However, unlike them, Paxos received the conditional consent of the regulator to create a separate trust.

To fulfill the established regulatory requirements, PaxOS may require 18 months. Then the regulatory authorities will conduct the necessary checks for compliance with the new trust with the declared parameters. After that, the regulator will issue a PAXOS permanent license, which will allow the company to work in all states. Burstein said, that the approval of the OCC gives Paxos "clear national powers", With the possibility of storing ordinary money and cryptocurrencies, as well as their exchange at the state level.

According to Burstein, Paxos could get a regular license to transfer money to the country, However, this would not allow her to storage assets. Paxos intends to become a reliable provider of digital assets services, Therefore, it was aimed at receiving a federal banking license, despite the more stringent requirements for capital and audit.

“There are many other ways, which we could go. But they do not provide that level of reliability, which we need ", - said Burstein.

After starting a new trust, Paxos will continue to work in accordance with Bitlicense. Burstein explained, that the company does not need to abandon infrastructure in New York, It took about six years to create. Besides, Paxos customers will have the opportunity to choose a trust in accordance with their needs.

Recall, that last year PaxOS concluded cooperation with the PayPal payment company to launch cryptocurrency trading.