The bitcoin exchange platform has now been approved as a New York State Trust company by the New York State Department of Financial Services (NYDFS). itBit Trust Company will be the custodian of the company’s clients’ assets and will be subject to New York State banking law.
The approval comes during a time of regulatory uncertainty to digital-currency companies. Ripple Labs, the crypto-currency maker, was fined $700,000 by Financial Crimes Enforcement Network (FinCen) for failing to register as a money services business (MSB) and failing to implement an adequate anti-money laundering (AML) program.
In a speech the following day (6 may) Jennifer Shasky Calvery, director at FinCen, announced that the agency is in the process of carrying out “a series of supervisory examinations of businesses in the virtual currency industry”.
Calvery’s announcement undoubtedly adds even more importance to itBit’s charter. The company is now the only bitcoin platform to be regulated by US authorities.
Big day. New York issues first charter to a virtual currency company: @itBit (a Bitcoin Exchange) pic.twitter.com/CXrYTrtpGk
— Ben Lawsky (@BenLawsky) May 7, 2015
In order to satisfy the inevitable influx of US customers, the company has also raised $25m from Series A funding. The money will be used to expand its operations and products. They will also use the money for staff recruitment.
At the same time as Series A funding, itBit has added some new members to its board of directors. These include former US Senator Bill Bradley; ex- FDIC chairman Sheila C. Bair; former FASB chairman Robert H. Herz.
“Regulatory approval from the NYDFS allows us to serve as a custodian for our clients’ assets and expand our services to U.S. customers – the largest market of bitcoin traders in the world – and allows us to do so with the highest standard of care afforded by any Bitcoin company,” said itBit CEO and co-founder Charles Cascarilla.
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