The agency granted approval for Gemini’s Articles of Organization and its application for exemption from the deposit insurance requirements of Section 32 of the Banking Law, based on the NYDFS Weekly Banking Bulletin for September 25, 2015. The filing was made in July 2015, as the Winklevoss twins sought regulatory approval to operate as a trust company and have the Bitcoin exchange offer services to individuals and institutions in the country.
With that, Gemini Bitcoin exchange is now an established entity but this only marks the first among many steps before the company can start offering its services. As for the deposit insurance exemption, this means that Gemini will not be eligible for providing FDIC insurance on the accounts.
Besides, banking charter restrictions on fiat lending don’t apply to bitcoin, which suggests that the bitcoin exchange can still be open to offering other products such as bitcoin derivatives and futures, which were ruled as commodities by the CFTC. Under New York state’s banking law, a trust company has all the powers of a bank to take deposits and make loans, aside from certain fiduciary powers such as acting as an agent for governmental bodies.
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