Anchorage Digital, a prominent cryptocurrency bank, has received a coveted BitLicense from the New York Department of Financial Services (NYDFS). This approval marks a significant milestone for Anchorage’s New York subsidiary, allowing the firm to offer regulated crypto services starting in 2025.

CEO Nathan McCauley emphasized that the license will enable the company to introduce “regulated and efficient crypto trading” to clients in the state. The approval highlights Anchorage’s commitment to compliance in a challenging regulatory landscape.

Despite this achievement, the NYDFS website has yet to update its list of licensed entities to include Anchorage. Since the introduction of the BitLicense program in 2015, only 33 companies have been approved to provide crypto services in New York, underscoring the stringent nature of the licensing process.

While the BitLicense has faced criticism from industry players for being overly restrictive, major firms like Coinbase, Circle, and Gemini operate under its framework. However, it has also led to enforcement actions. Earlier this year, Genesis Global Trading surrendered its BitLicense as part of a settlement related to alleged investor fraud through the Gemini Earn program.

New York continues to play a pivotal role in the U.S. crypto industry, hosting numerous firms while also being a hotspot for regulatory crackdowns. NYC Mayor Eric Adams, known for his pro-crypto stance, has previously criticized the BitLicense program, calling it “stifling.” Interestingly, Adams has openly celebrated the rise in his Bitcoin holdings, received as part of his first three paychecks.

This development positions Anchorage Digital as a key player in New York’s regulated crypto market, setting the stage for greater institutional involvement in the years to come.