In an interesting turn of events, New York’s Financial Services Department granted the first license to a Bitcoin exchange, making it the first legally authorized Bitcoin exchange to customers across the country. The exchange, called itBit, essentially gives the company the ability to operate broadly in the US.
In addition to this, itBit also announced on May 7 that it acquired $25 million in funding and that they also appointed three important board members: former Federal Deposit Insurance Corporation chairwoman Sheila C Bair, former New Jersey senator Bill Bradley, and Morgan Stanley director Robert H Herz.
This basically gives itBit the ability to operate the same way a bank would but as for the confusion surrounding other Bitcoin businesses that operate without guidelines, there’s a bit more work to be done. Throughout last year, Bitcoin businesses have been working in tandem with regulators in New York, in order to develop a framework to regulate virtual currency businesses. It’s still a work in progress though.
The department then introduced the concept of Bitlicenses in July last year as an attempt for virtual currency businesses to comply with its mandatory rules. itBit’s license however, is not a Bitlicense per se, but rather is a license usually given to banks.
It will be really interesting if this concept can come to Sri Lanka as well.