Bitcoin exchange itBit can now openly deal in the controversial digital currency as New York State’s Department of Financial Services (DFS) has granted it the required license. With the license, the company has become the first bitcoin exchange in the country to attain a bank-like status.
The exchange, itBit, said that it has started taking on customers in America immediately after it received a banking trust charter. New York State’s Department of Financial Services’ superintendent, Benjamin M. Lawsky, has been making efforts to come up with new rules for the upcoming virtual currency industry.
The company, itBit, which has offices in New York and Singapore, has also announced other great news that it has won $25 million in new financing. It has also appointed three prominent members to its board, including Sheila C. Bair, the former chairwoman of the Federal Deposit Insurance Corporation; Bill Bradley, the former New Jersey senator; and Robert H. Herz, a Morgan Stanley director.
The company has been given a bank-like status. This status has made it a winner among Bitcoin exchanges to be the first one to be fully regulated in America. itBit’s chief executive, Charles Cascarilla, said that it is a big news not only for them, but also for the complete bitcoin industry.
In the past, many unregulated Bitcoin exchanges have failed under different circumstances owing to which people lost coins worth hundreds of millions of dollars and were unable to have them back. These factors even spoiled the image of the industry in front people.
Since the financial crisis, itBit is the first company to be created in New York. Rather than applying for a BitLicense, it applied for a trust company charter, which is said to have stricter regulations. “The technology behind Bitcoin and other virtual currencies could ultimately hold real promise, and it is critical that we set up appropriate rules of the road to help safeguard customer funds”, said Lawsky.