ItBit CEO: Bitcoin Can’t Circumvent the Financial System

Charles CascarillaCompetition in the US bitcoin exchange market continued to escalate last week with the announcement by New York-based itBit that it would open to consumers in all 50 US states.

The decision comes amid a time when many US exchange market participants appear to be jostling for position ahead of the release of the final BitLicense regulatory framework this May. Coinbase launched its exchange product to customers in 24 states in January, while the Winklevoss Capital-backed Gemini intends for its launch to coincide with the release of the BitLicense.

Despite the number of entrants competing for a small but burgeoning market, ItBit CEO Charles Cascarilla is confident that his exchange has done enough to separate its product owing to its status as “the only regulated entity in the entire bitcoin world”.

Along with its announcement that it raised $25m as part of its Series A, itBit revealed it had secured a banking charter from the New York State Department of Financial Services (NYDFS).

In a new interview, Cascarilla cited the inability for other exchanges to offer regulatory assurance to large institutional investors as a competitive advantage that would set his firm apart, one that was hard fought,

Read more ... source: CoinDesk