NY Department of Financial Services Grants Charter to Bitcoin Exchange

The New York Department of Financial Services (“NYDFS”) granted a charter under New York banking law (“Banking Law”) to Gemini Trust Company, LLC (“Gemini”), a Bitcoin exchange based in New York City. The NYDFS stated that it conducted a rigorous review of Gemini’s July 2015 application to operate as a trust for virtual currency exchanges in which it examined the company’s anti-money laundering, capitalization, consumer protection and cybersecurity standards. The NYDFS stipulated that as a chartered limited purpose trust company with fiduciary powers under the Banking Law, Gemini can begin operating immediately and is subject to ongoing supervision by the NYDFS.

Lofchie Comment: Gemini made an interesting legal/strategic decision to be regulated under “banking” law rather than under the new bitcoin regulatory framework.