New York banking regulator grants first charter to bitcoin company

Reuters News
Posted: May 07, 2015 11:26 AM

By Karen Freifeld

NEW YORK (Reuters) - ItBit Trust Company, LLC, a bitcoin exchange, has been granted a charter under New York State’s banking law, becoming the first virtual currency company to receive a charter in the state, according to New York’s Department of Financial Services.

The exchange can begin operating immediately, but will be required to meet the obligations for both a trust company under New York law and upcoming “BitLicense” regulations, the state agency said.

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New York's Department of Financial Services is expected to issue final regulations to license bitcoin and other virtual currencies later this month.

(Reporting By Karen Freifeld)