New York is often seen as a problematic state especially when it comes to regulatory outlook within the US. The state has some of the toughest cryptocurrency regulations in place and has now updated them recently, but it is not deterring Gemini exchange from fulfilling regulatory obligations and it has decided to continue working with the government to get its dreaded BitLicense.
Gemini exchange was founded by the Winklevoss Twins, Tyler and Cameron. They invested in Bitcoin back in 2014 and were also involved in a ~$100 million settlement with Facebook founder and CEO Mark Zuckerberg regarding facebook itself. Being one of the early adapters of the cryptocurrency as well as the founders of a progressive cryptocurrency exchange Gemini and stablecoin project Gemini Dollar.
Now Gemini is looking to accept regulations from the New York state government which are considered some of the toughest among the 50 states and US territories. The BitLicense, a licensing scheme launched by the state government envisages a strict range of regulations that need to be enforced before a cryptocurrency exchange can start operations within New York. Most exchanges including Coinbase and Bitfinex have spoken against these tough regulations and demanded that they be revisited to help the industry go forward in the financial capital of the country.
However, Gemini is instead looking to accept these regulations comply with them. According to chief compliance officer, Noah Perlman:
The proposed conditional licensing framework is another step the DFS is taking to help ensure this industry continues to grow and innovate — so that it becomes more accessible to more people without compromising safety or security.
So, Gemini instead of fighting back is looking to allow these tough regulations to get a slice of the huge New York market. Many proponents of the cryptocurrency sector believe that institutional investment is the key for Bitcoin to become a mainstream asset and drive its long-term position forward. New York hosts some of the biggest investments companies and banks in the world and perhaps that is a reason why the exchange is looking to continue on with the tough regulations.
We chose to headquarter Gemini in New York State and go through the added regulatory hurdles of receiving a trust license from the NYDFS for this exact reason. NYDFS has led the charge on regulating crypto and its thoughtful approach to regulation is helping propel the cryptocurrency industry forward.
The BitLicense was introduced back in 2015 and since this development, top crypto exchanges including Kraken and Coinbase have pulled out of the state itself.
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