Gemini, the bitcoin exchanged started by Cameron and Tyler Winklevoss, has finally received approval to launch from the New York State Department of Financial Services (NYSDFS).
More specifically, the company is now allowed to operated as a chartered limited liability trust company. Notably, this is different (and subject to stricter regulatory approval) than a BitLicense, which is a new business license issued by the NYSDFS for businesses that deal with Bitcoin.
Tyler Winklevoss, CEO of Gemini, said “we didn’t apply for a BitLicense because we wanted to build an exchange that both Main Street and Wall Street could use and trust, so we decided to obtain a limited liability trust company charter in order to do so.” Speaking at TechCrunch Disrupt last spring, the brothers said that Gemini will be like “NASDAQ, E-Trade, and DTC built into one.”
Gemini will allow both Bitcoin and fiat deposits, which will be held in offline cold storage, and in a New York-based, FDIC insurance-eligible bank, respectively. The fact that a FDIC insured bank will be working with a Bitcoin exchange is notable, since traditional financial institutions have normally shied away from cryptocurrency-based businesses.
The exchange will be targeted at both