Yesterday
Reuters reported that Bitcoin telephone commutation itBit has
filed for a banking license inward New York.
Approval for the license could accept a distich of weeks, according to sources for Reuters, which could potentially brand itBit the outset Bitcoin companionship regulated every bit a banking concern inside the United States.
itBit plans to live on inward into multiple aspects of the fiscal services’ business. Currently, the companionship operates every bit an telephone commutation where buyers as well as sellers merchandise Bitcoin.
itBit has long seat emphasis on Anti-Money Laundering as well as Know Your Customer policies. This remains the case.
“Some highly publicized failures as well as potentially illegal activeness direct maintain focused attending on virtual currencies as well as direct maintain highlighted the need for a audio regulatory framework for virtual currencies,” itBit Chief Executive Charles “Chad” Cascarilla stated inward an Oct missive of the alphabet to New York’s terra firma banking regulator.
ItBit’s telephone commutation operates inward Singapore, but the companionship of late moved its main headquarters to New York, as well as fifty-fifty hired Erik Wilgenhof Plante from eBay Inc every bit primary compliance officer.
“Whether fairly or not, companies that live on inside the regulatory framework are to a greater extent than trusted yesteryear customers as well as partners,” said David Berger, CEO of the Digital Currency Council, which advocates for digital currency.
itBit Trust Company LLC has enlisted sometime Federal Deposit Insurance Corporation Chairman Sheila Bair, sometime Financial Accounting Standards Board manager Robert Herz as well as sometime New Bailiwick of Jersey Sen. Bill Bradley, to maneuver the application procedure as well as beyond.
itBit enjoys venture majuscule funding from Canaan Partners, RRE Ventures, as well as Liberty City Ventures. The companionship has received $3.3 1000000 inward a circular of fund-raising, according to CrunchBase.
CCN
Ben Lawsky, Superintendent of the New York Department of Financial Services (NYDFS), has
pursuedregulation of digital currencies similar Bitcoin via a a so-called BitLicense. As Lawsky stated:
“In developing this regulatory framework, nosotros direct maintain sought to strike an appropriate remainder that helps protect consumers as well as origin out illegal activeness – without stifling beneficial innovation. These regulations include provisions to assist safeguard client assets, protect against cyber hacking, as well as forestall the abuse of virtual currencies for illegal activity, such every bit money laundering.
itBit’s emphasis on AML as well as KYC volition bode good for its application. The companionship has long been
expanding its operations, amongst the main electrical load against the companionship from customers existence that its safety measures are likewise stringent.