A global Bitcoin exchange itBit offers applied for a banking license with the New York Department of Financial Services (NYDFS). According to a Reuters report, approval for the license is expected in the next couple of weeks, which could make itBit the first Bitcoin company to be regulated as a bank.
The spokespersons pertaining to itBit and New York’s department of financial services possess confirmed that the company got put in an application for the financial license however , the global Bitcoin marketplace hasn’t released the official statement yet.
Under the leadership of Charles “ Chad” Cascarilla, the company is looking to branch away into different sectors from the financial services industry, other than working as a Bitcoin exchange.
Founded in 2012, itBit has offices in 2 key financial markets, Singapore and New York.
The company’s filing lists three prominent names as “ organizers, ” including Federal Deposit Insurance Corporation (FDIC) Chairman Sheila Bair, ex-Financial Accounting Standards Board (FASB) Director Robert Herz, and former New Jersey Senator Expenses Bradley.
The particular technology behind the digital currency Bitcoin i. e. the blockchain, which is a open public ledger of all the transactions within the Bitcoin network, has been generating keen interest from top companies like IBM, within the anticipation that the technology could be applied to several other, more effective utilizes.
Jeff Neuburger, a partner at Proskauer Increased said, “ Many people believe that the real payoff with all the Bitcoin phenomenon is blockchain and all the various uses it could be put to. It will have some effect on the way all kinds of financial services are conducted. ”
When the company gets the nod to begin banking operations, the technologies experts would be closely viewing if the company is able to innovate the traditional banking functioning using its understanding of the blockchain technologies, which allows for speedier and cheaper processing of obligations.