It does not get more legit that this. Trading in digital currency Bitcoin, hitherto considered somewhat of a “gray area” legally, just got a major fillip in the US. The New York, US-based virtual currency Bitcoin trading platform ‘itBit’ has just been given the final go-ahead by New York’s top financial regulator, making it the 1st in the country to be fully regulated.
A news report in the New York Times said the New York State’s Department of Financial Services trust company charter issued in favor of itBit gave it a banklike status & “appeared to make it the winner in a race among Bitcoin exchanges to become the first to be fully regulated in the United States.” A trust company charter reportedly comes with some very stringent regulations.
Built by Wall Street professionals, itBit aimsto delivers an “institutional-grade exchange” with all of the key trading & account management features that serious investors demand.
Making the announcement on its blog, CEO Charles Cascarilla wrote: Regulatory compliance is paramount when establishing any type of financial services company. This is not so much a belief or strategy as it is a matter of fact; there are extensive, well-established guidelines from multiple agencies at all levels of government on how to work within the system, and harsh consequences for those who do not comply. While some see bitcoin as alluring for its potential to operate outside this system, we see it differently. We believe bitcoin and blockchain technology have immense potential within the system — to help make it more efficient, to offer new solutions and to bring us all into the future. With this bigger vision in mind, we realized that being regulatory compliant is not enough. We don’t just want to stay within the lines — we want to set an entirely new standard.
So today we’re pleased to introduce the itBit Trust Company, the custodian of our clients’ assets, ensuring they are protected under the highest possible standard of care. The New York State Department of Finance oversaw the formation of the Trust and will oversee its ongoing operations — meaning that the Trust has to meet high regulatory standards, pass regulatory exams and maintain the required regulatory capital to back up client assets. The requirements for establishing a trust are so extensive that we have created the first new trust in the state of New York since before the financial crisis of 2008. The process to get here has been long, but worth it for building the confidence and trust of our clients. Our clients can rest assured knowing that their deposits are secure no matter the exigency. Further, our US customers will have the additional assurance that their dollars will be kept in FDIC-insured, on-shore bank accounts.
Following the development, itBit has thrown open its doors to customers all around the US to trade on this platform. It has also introduced the itBit Trust Company for being the custodian of the assets of its potential customers. A trust company is a legal entity that acts as an agent or trustee on behalf of a person or business entity for the purpose of administration, management and the eventual transfer of assets to a beneficial party. itBit is able to accept clients from all 50 US states via its new New York State issued Trust Charter.
itBit’s maker-taker fee model offers customers the opportunity to trade commission-free & get charged lower fees the more they trade.
Image Credit: itBit
•Share This•
