Menu
In run-up to bitcoin regulations, New York issues trust company charter to itBit

In run-up to bitcoin regulations, New York issues trust company charter to itBit

With its trust company charter, itBit is subject to the same government oversight as other financial institutions

A few weeks before New York officials are expected to issue a final regulatory framework for bitcoin, the state has issued a trust company charter to virtual currency exchange itBit.

Obtaining a trust company charter subjects itBit to the same state and federal regulations that apply to other financial services firms, according to the New York State Department of Financial Services. For example, deposits made to itBit must be fully insured. To offer this guarantee, itBit teamed up with an unnamed U.S. bank to insure client accounts up to US$250,000.

Qualifying for the charter, which itBit applied for in February, means the exchange's cybersecurity, consumer protection and capitalization plans, among other areas, were reviewed by the New York financial services department.

New York State Department of Financial Services Superintendent Benjamin Lawsky began looking into regulating bitcoin exchanges in 2013 and is expected to release a final set of regulations later this month. He issued draft proposals for bitcoin regulations for public comment last year.

Regulation can help the virtual currency industry grow while protecting customer funds, Lawsky's office said in a press release Thursday.

ItBit operates in New York and Singapore and targets large investors. Knowing that itBit complies with U.S. financial laws will help assure customers that their deposits are secure, the New York City startup said in a blog post Thursday.

Hackers have targeted bitcoin exchanges in recent years and made off with bitcoins worth millions of dollars. Mt. Gox was the world's most prominent exchange until it folded last year after attackers stole $474 million worth of bitcoins. This past January, Bitstamp lost $5 million worth of bitcoins in an attack.

Fred O'Connor writes about IT careers and health IT for The IDG News Service. Follow Fred on Twitter at @fredjoconnor. Fred's e-mail address is fred_o'connor@idg.com


Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags itBitregulationgovernment

Featured

Slideshows

Sizing up the NZ security spectrum - Where's the channel sweet spot?

Sizing up the NZ security spectrum - Where's the channel sweet spot?

From new extortion schemes, outside threats and rising cyber attacks, the art of securing the enterprise has seldom been so complex or challenging. With distance no longer a viable defence, Kiwi businesses are fighting to stay ahead of the security curve. In total, 28 per cent of local businesses faced a cyber attack last year, with the number in New Zealand set to rise in 2017. Yet amidst the sensationalism, media headlines and ongoing high profile breaches, confusion floods the channel, as partners seek strategic methods to combat rising sophistication from attackers. In sizing up the security spectrum, this Reseller News roundtable - in association with F5 Networks, Kaspersky Lab, Tech Data, Sophos and SonicWall - assessed where the channel sweet spot is within the New Zealand channel. Photos by Maria Stefina.

Sizing up the NZ security spectrum - Where's the channel sweet spot?
Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Consegna comes to town with AWS cloud offerings launch in Auckland

Consegna comes to town with AWS cloud offerings launch in Auckland

Emerging start-up Consegna has officially launched its cloud offerings in the New Zealand market, through a kick-off event held at Seafarers Building in Auckland.​ Founded in June 2016, the Auckland-based business is backed by AWS and supported by a global team of cloud specialists, leveraging global managed services partnerships with Rackspace locally.

Consegna comes to town with AWS cloud offerings launch in Auckland
Show Comments