May 7, 2015 / 3:28 PM / 3 years ago

New York banking regulator grants first charter to bitcoin company

NEW YORK (Reuters) - ItBit Trust Company, LLC, a bitcoin exchange, has been granted a charter under New York State’s banking law, becoming the first virtual currency company to receive a charter in the state, according to New York’s Department of Financial Services.

Bitcoin (virtual currency) coins are seen in an illustration picture taken at La Maison du Bitcoin in Paris July 11, 2014. REUTERS/Benoit Tessier

The exchange can begin operating immediately, but will be required to meet the obligations for both a trust company under New York law and upcoming “BitLicense” regulations, the state agency said.

New York’s Department of Financial Services is expected to issue final regulations to license bitcoin and other virtual currencies later this month.

Reporting By Karen Freifeld

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