Earlier this week, several bitcoin exchanges announced they were ceasing operations in New York due to the new BitLicense requirements. We have received a number of questions around itBit’s legal status in New York as well as the BitLicense and wanted to take a moment to address the community.
Will itBit Continue to Offer Services in New York?
Why Can itBit Legally Operate in New York?
itBit is a New York State chartered trust company organized under New York Banking Law and regulated by the New York Department of Financial Services. As a trust company, itBit is subject to a higher level of regulatory oversight than those required to obtain a BitLicense.
No other bitcoin exchange is subject to this level of regulation. This ensures that our customers receive the highest level of security and protection for the bitcoin and fiat assets they deposit with us.
Does itBit need a separate BitLicense in addition to its Trust Charter?
itBit is a chartered trust company under New York Banking Law that received approval to operate from the superintendent of the New York State Department of Financial Services on May 7, 2015. As noted above, itBit is subject to even more stringent requirements than those applied to any individuals or companies licensed only under a BitLicense.
To be clear, itBit does not require a separate BitLicense. According to page seven of the final BitLicense legislation displayed below, itBit meets all the criteria for exemption:
The following Persons are exempt from the licensing requirements otherwise applicable under this Part:
(1) Persons that are chartered under the New York Banking Law and are approved by the superintendent to engage in Virtual Currency Business Activity
itBit has been headquartered in New York since May 2014 and we are dedicated to providing a full-service digital marketplace to our U.S. customers. We believe that New York, as the global financial hub, is the perfect location to realize our mission to enable anyone to trade any asset, any time, any where in a trustworthy way.