itBit Raises $25 Million, Granted Charter by NYDFS to Run Across the country with FDIC Insurance

nydfs-itbit

Today, worldwide bitcoin exchange itBit revealed it had actually been granted a trust charter by the New York Department of Financial Solutions (NYFDS) under New york city State banking law. This is the first such charter given to a digital currency company by the NYDFS. ItBit also announced the successful completion of a $ 25 million Series A financing round and the expansion of their board of directors.

Under the charter granted to itBit by the NYFDS, itBit is now able to accept customers from all 50 U.S. states in complete compliance with state and federal law.

“We have sought to move swiftly but carefully to put in place guidelines of the road to safeguard consumers and supply higher regulatory certainty for virtual currency entrepreneurs,” said Benjamin Lawsky, superintendent of the NYDFS, in a statement.

ItBit applied to NYDFS for a charter start in February 2015. According to the NYDFS, it performed an extensive testimonial of itBit’s anti-money laundering, capitalization, consumer protection and cyber security requirements.

“Our mission at itBit has actually always been to produce a trusted, institutional-grade exchange, and regulative compliance is a vital pillar of that objective,” said itBit CEO and co-founder Charles Cascarilla in a statement. “Regulatory approval from the NYDFS enables us to serve as a custodian for our customers’ assets and broaden our services to U.S. consumers– the largest market of bitcoin traders worldwide– and permits us to do so with the highest standard of care managed by any Bitcoin company.”

In addition, itBit has actually partnered with a U.S. FDIC-insured banking institution to be able to offer FDIC insurance on all fiat balances held by U.S. customers. itBit has also validated the immediate accessibility of their exchange platform to all U.S. retail and institutional bitcoin traders.

The funds itBit has actually raised in its $ 25 million Series A round will be used to scale operations as it starts to onboard U.S. clients. Previous financiers RRE Ventures, Liberty City Ventures and Jay W. Jordan II took part in the round, together with brand-new participant Raptor Capital management chairman James Pallotta.

Corresponding with the raising of funds, itBit has added three new members to its board of directors: previous Sen. Expense Bradley, previous FDIC Chairman Sheila C. Bair and previous FASB Chairman Robert H. Herz. Bradley acted as a U.S. Senator representing New Jersey from 1979 to 1997 and belonged to the Senate Finance Committee. Bair served as Chairman of the FDIC from 2006 to 2011 and was named among Time’s 100 Most Prominent People. Herz was previously the Chairman of the Financial Accounting Standards Board (FASB) and is on the boards of Morgan Stanley and Fannie Mae.

This announcement from itBit sets a new standard for regulatory compliance for digital currency business.

This is an establishing story and Bitcoin Publication will certainly continue to update it.

The post itBit Raises $ 25 Million, Granted Charter by NYDFS to Operate Nationwide with FDIC Insurance appeared initially on Bitcoin Magazine.


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