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The New York State Department of Financial Services (NYDFS) has granted the Gemini Trust Co. approval for its Articles of Organization. The NYDFS also granted Gemini an exemption from the FDIC deposit insurance requirements of New York’s banking laws.
It’s all been part of an arduous process to gain the solid regulatory backing needed to make Gemini the top choice for institutional investors.
The Winklevoss twins, Tyler and Cameron, set up the Gemini exchange as a trust company under New York regulations. It gives the Bitcoin exchange many of the same privileges as a bank, including the ability to take deposits.
But as a banking trust, Gemini can’t lend money. Lending isn’t necessary for Gemini to function as a Bitcoin exchange, and it would have lengthened the approval process even more.
The new approvals make the Gemini Trust Co. an “established entity,” which means it can now