New York regulator grants banking charter to bitcoin exchange Gemini Trust

On Monday the New York Department of Financial services granted a banking charter to Gemini Trust Company, the Bitcoin exchange founded by Cameron and Tyler Winklevoss.

The firm is the most high profile digital currency company to receive a charter since the New York regulator issued a public order in March 2014 requiring certain virtual-currency exchanges to apply for them.

“We didn’t apply for a BitLicense because we wanted to build an exchange that both Main Street and Wall Street could use and trust, so we decided to obtain a limited liability trust company charter in order to do so,” said Tyler Winklevoss, chief executive officer of Gemini, in a company statement. 

The first company to receive a charter was itBit Trust Company, which got it in May.

In June, the regulator published its final rules indicating which cryptocurrency companies must apply to the regulator for a so-called BitLicense which gives permission to operate in New York State. It approved the first BitLicense, which involves a less tough review process than receiving a charter, in September.

Gemnini said its exchange will be open for trading on Thursday.

Greater scrutiny is now being applied to virtual currency companies. Last month, the Commodity Futures Trading Commission designated bitcoin an official commodity.