Special purpose storage institutions

The State of Wyoming has launched a new type of banking license that also allows cryptocurrency management. This could facilitate the activity of crypto companies in New York State, avoiding obtaining BitLicense.

The new type of license is called Special Purpose Depository Institutions (SPDI) and authorizes the activity of a new type of fiat bank that can also offer custody for cryptocurrencies. SPDI holders are authorized to operate in all US states. Therefore, those who obtain Wyoming SPDI no longer need to obtain BitLicense to activate in New York.

The New York Department of Financial Services (NYDFS) created BitLicense in 2014. Since then, it has granted only 18 licenses, largely because the process is very complicated.

Special purpose storage institutions – a BitLicense alternative

Many crypto companies have opted out of New York because of this. The new Wyoming SPDI license may be a solution.

In addition, the license could solve another problem of the crypto market – the difficulty of obtaining banking services.
Companies with a minimum capital of $ 5 million that obtain the SPDI license will have accounts at Federal Reserve and they will have the ability to be their own banks.

“Some companies may choose to partner with a partner SPDI, and others may choose to create their own SPDI subsidiaries,”

said Caitlin Long, representative of the Wyoming Blockchain Task Force.

Long also said that from a legal point of view, the SPDI license is a banking one, while BitLicense is a money transmitter.

“SPDI Wyoming companies should apply to NYDFS to open a branch in New York, and NYDFS should approve the application. If he refuses, there is a lot of previous favorable case law, ”

Long explained.

This is positive news for crypto companies, who have complained about the difficulty of obtaining a BitLicense.