Bitcoin exchange itBit will be the first such venue to be fully regulated once the final BitLicense regulations are rolled out in New York next month, according to a report by The Register.
The BitLicense regulations, titled “BitLicense Regulatory Framework for Virtual Currency Firms”, are being administered by the New York Department of Financial Services (NYDFS) and will govern how businesses engaging in virtual currency operate in New York State.
In earlier conversations with Finance Magnates, itBit has stressed that it aims to replicate the level of regulatory compliance found in traditional financial institutions, in preparation for the day when regulation arrives. The efforts include measures with regards to general financial compliance as well as those specific to digital currency, such as wallet security.
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Recently, the firm moved its headquarters from Singapore to New York because of its prominence as a financial center, but also to operate in a regulated jurisdiction. It has reportedly been recently engaging in a number of final preparations for full compliance.
The exchange has even applied for a banking license and hired three notable figures to assist: former Federal Deposit Insurance Corporation Chairman Sheila Bair, former Financial Accounting Standards Board director Robert Herz, and former New Jersey Senator Bill Bradley.
Other US-based exchanges, such as that of Coinbase, are likely working hard to be fully prepared for when the switch is flipped. When launching its exchange earlier this year, regulators rejected Coinbase claims that it is regulated, largely because regulation did not yet exist. It remains to be determined who will in fact be first to the finish line.