submitted by GTE_IO to u/GTE_IO [link] [comments]
ShortHop, an “exchange of exchanges” for cryptocurrency trading, has launched in seven additional U.S. states.
Revealed exclusively to CoinDesk, the exchange and brokerage has opened for business in Indiana, Massachusetts, Nevada, New Jersey, Rhode Island, Arizona and Montana. The Wilmington, Del.-based ShortHop was already live in California, Washington and Illinois.
While the exchange’s parent company, technology provider Velocity Markets, is registered as a money services business (MSB) with the Financial Crimes Enforcement Network (FinCEN), ShortHop had to apply for money transmitter licenses in each state where it does business. The company also expects to be licensed in Utah and Pennsylvania next week.
As a “spot fill market,” ShortHop allows customers to transact digital asset listings from multiple order books on one screen in addition to its own orders to provide customers with the lowest price, said Velocity Markets CEO Jonathan Kelfer.
“You might find that when you go on Binance, the spot price for bitcoin is the quoted price. When you go on Gemini it’s the quoted price there as well,” Kelfer said, by way of example. “We’ll use that in aggregate to get the best price across the ecosystem.”
In this way, the company’s model resembles those of Voyager and Fidelity Digital Asset Services, both of which act as brokers, helping customers find the best deals in a highly fragmented market. The difference is that ShortHop also has its own exchange.
“ShortHop is a spot market first, but we’re aggregating liquidity across the ecosystem,” Kelfer said, adding that the service is currently plugged into a total of eight exchanges and OTC desks.
ShortHop’s organic orders get treated like any other order on the marketplace, but “the more orders, the better the price,” Kelfer said.
Skipping between assetsKelfer founded the company in the early part of the initial coin offering (ICO) boom, seeing a need for reliable American exchanges.
“It was my perspective that there wasn’t a U.S.-based presence where people could reliably base these assets,” Kelfer said. “You really had to get on some Chinese exchange, because U.S. exchanges weren’t listing most of these tokens.”
Currently, ShortHop just lists a few major cryptocurrencies. Users can acquire and trade bitcoin, ether, litecoin, bitcoin cash, XRP and Stellar lumens (XLM). ShortHop also allows customers to “hop” between these assets without having to go through multiple conversions on different exchanges. Its technology accomplishes this by cross ordering books to create synthetic pairs.
Velocity Markets is also building a digital securities exchange. It owns a broker-dealer under the legal name Distributed Technology Markets that has an alternative trading system form on file at the U.S. Securities and Exchange Commission. The company will be using the broker-dealer license to enable the digital securities exchange, but the company would not disclose when it plans to launch.
Right now, new users on ShortHop’s platform receive $25 worth of bitcoin for signing up. The platform at the moment is feeless, and Kelfer plans to subsidize retail users by offering a plug-in service to institutions who want to connect to the exchange’s capabilities.
“We’d rather do this than nickel-and-dime retail users who should have access to the same quality of infrastructure that large players do,” Kelfer said. “That’s not to say we won’t layer on fees in the future.”
Jonathan Kelfer image via Velocity Markets
Illinois Money Transmitter Licenses for Crypto Companies. Cryptocurrency exchange service providers operating in the state of Illinois may need to obtain a money transmitter license under the ... Illinois: Transmitter or Money, MT.0000350 View Disclosure: Illinois Department of Financial and Professional Regulation ; 320 West Washington Street; Springfield, IL 62786; Iowa: Money Services License, 2014-0087: State of Iowa Division of Banking; 200 E. Grand Avenue, Suite 300; Des Moines, IA 50309; Kansas: Kansas Money Transmitter License, MT.0000078: Kansas Office of the State Bank ... Kansas Money Transmitter License, MT.0000139: Kansas Office of the State Bank Commissioner 700 SW Jackson Street, Suite 300 Topeka, KS 66603: Louisiana: Money Transmitter License: Louisiana Office of Financial Institutions Post Office Box 94095 Baton Rouge, LA 70804-9095: Maine: Maine Money Transmitter License, NMT1694296 On April 10, 2019, the New York Department of Financial Services rejected the money transmitter license application of Bittrex, a cryptocurrency exchange with a headquarters in Seattle. Bittrex subsequently issued a statement that disputed some of the assertions made in the NYDFS rejection letter. Before a crypto company can get a money transmitter license, ... The guidance document goes into much further detail to help companies understand when Illinois’ money transmitter regulations apply to virtual currencies. When a company’s business model falls under the TOMA regulations, the DFPR has the flexibility to modify the capital reserve requirements. “The Department understands ... HB 7141 (2017) requires money transmitter license holders that are entrusted to take care of altcoins for a person or business to hold altcoins of the same type and amount at all times. HB 5001 (2018) would establish a service fee for altcoins traded in the state. Robinhood announced last week Robinhood Crypto received a virtual currency license, also known as the BitLicense, and a money transmitter license in the state of New York.
[index]          
In this update I go over the latest interest rate changes and news in the CeFi space: - New syndicate event on Crypto.com - BlockFi get Monty Transmitter License in North Carolina - First Thoughts ... 🔴 BINANCE LIVE BITCOIN GIVEAWAY 🔴 CZ announce BTC GiveAway! 🔴 Binance 5,690 watching Live now Differences Between FHA , VA, CONVENTIONAL , USDA Mortgage Loans - Duration: 20:13. This video is unavailable. Watch Queue Queue Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. - Bittrex has been approved as a Money Transmitter in the state of Illinois! License 1544336 #Crypto #Bitcoin #Litecoin ===== Sign up with Coinbase for Free to start investing in Bitcoin and get ... The U.S Senate met on February 6th to discuss "virtual currencies" such as Bitcoin. Many interpreted this meeting as bullish for Bitcoin and other cryptocurrencies, primarily off the back of CFTC ... - Shark Tank's Kevin O'leary is pulling a smoke and mirrors move on Bitcoin and Crypto.‘Shark Tank’: This app turns your spare change into bitcoin — and Kevin O’Leary invested $100,000 ...