The New York State Department of Financial Services (NYDFS) today announced that it has granted a charter under the New York Banking Law to Gemini Trust Company, LLC– a Bitcoin exchange that is based in New York City.
As a result of the regulatory decision, three virtual currency firms have now obtained charters or licenses from NYDFS – Gemini, Circle, itBit.
NYDFS has published a March 2014 public order initiating a process for accepting charter applications for virtual currency exchanges under the existing New York Banking Law. Such exchanges are also expected to respond to the full requirements of the NYDFS BitLicense regulatory framework – which was finalized in June 2015 – as a condition of licensure.
Gemini applied to NYDFS for a charter to operate as a trust under that process for virtual currency exchanges in July 2015. NYDFS has carried out a review of the application, including but not limited to the company’s anti-money laundering, capitalization, consumer protection, and cyber security standards.
As a chartered limited purpose trust company with fiduciary powers under the Banking Law, Gemini can now commence operating and is subject to ongoing supervision by the NYDFS.
Acting Superintendent Albanese said:
“In New York, we are continuing to move forward on licensing and chartering virtual currency firms. Smart, targeted regulation that helps protect consumers and prevent illicit activity is vital to the long-term future of this industry.”
To date, NYDFS has received 25 BitLicense applications. The regulator is continuing to review and accept applications and proposals from other virtual currency companies.
Gemini’s NYDFS charter authorization certificate.
To view the press release on the New York DFS website, click here.