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As federal regulators mostly take a wait-and-see approach toward regulating trading in cryptocurrencies like bitcoin and ethereum, officials in New York state said they're embracing the nascent market -- and trying to promote it.

The state's Department of Financial Services said Wednesday in a press release that it had approved Tagomi Trading LLC's application for a virtual currency license.

The firm is authorized to engage in money-transmission, trade routing and order-execution services for non-securities virtual currencies, including bitcoin, ether, bitcoin cash and litecoin, according to the release.

The New York Department of Financial Services, which oversees the state's regulation of banks and insurers, has taken the lead nationally in regulating the virtual-currency market since 2015, according to the release, with application approvals for 18 companies. 

"DFS is committed to fostering innovation and strengthening the competitiveness of New York's burgeoning virtual currency sector," acting Superintendent Linda Lacewell said in the statement. "The department's approval of Tagomi's virtual currency and money transmitter licenses provides consumers with more choice and more protection in a continuously evolving global financial services marketplace." 

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Tagomi is an aggregation platform for trading virtual-currency assets, according to the press release. 

According to the company's website, Tagomi is registered as a federal money services business and licensed as a state money transmitter. It's not registered with the Securities and Exchange Commission or the Financial Industry Regulatory Authority. Its management team includes former executives of the Wall Street firm Goldman Sachs, the exchange operator Nasdaq, and the hedge fund Citadel LLC.

Some cryptocurrency trading platforms have taken the step of registering as exchanges, including on Nasdaq, which is overseen by the Financial Industry Regulatory Authority and the Securities and Exchange Commission.

And the commodities exchanges, CME Group Inc. (CME) - Get CME Group Inc. Class A Report and Cboe Global Markets Inc. (CBOE) - Get Cboe Global Markets Inc Report , regulated by the Commodity Futures Trading Commission, offer trading in bitcoin futures contracts.

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