Sci & Tech

First Official US BitCoin exchange Goes Live

First Official US BitCoin exchange Goes Live
First Official US BitCoin exchange Goes Live

The first government-approved BitCoin exchange in the US has gone live, Britain's The Register reported on Friday.

The New York State Department of Financial Services (NYFDS) has given itBit Trust Company the first charter to be a virtual currency in the world's financial center.

NYFDS superintendent Benjamin Lawsky said of the decision: "We have sought to move quickly but carefully to put in place rules of the road to protect consumers and provide greater regulatory certainty for virtual currency entrepreneurs."

"The technology behind Bitcoin and other virtual currencies could ultimately hold real promise and it is critical that we set up appropriate rules of the road to help safeguard customer funds. Indeed, we believe that regulation will ultimately be important to the long-term health and development of the virtual currency industry."

Following the collapse of the bitcoin exchange Mt. Gox, the NYDFS created a process to accept licenses for virtual currencies. So far, itBit is the only company to have applied. The NYFDS will also be publishing what should be its final set of regulatory frameworks for virtual currencies.

Saying that regulatory compliance was "paramount" and argued that bitcoin should not be a way to work outside the current financial systems but within it.

"We believe bitcoin and blockchain technology have immense potential within the system - to help make it more efficient, to offer new solutions and to bring us all into the future" itBit's website noted.

The company created the first trust in New York since the 2008 financial crash to go legit, something that Cascarilla notes "has been long, but worth it for building the confidence and trust of our clients".

BitCoin deposits will now be protected under the same financial laws as the rest of the financial industry, including FDIC insurance.