There was another piece of good news for US cryptocurrency investors as regulated cryptocurrency exchange, ItBit, announced that it had received approval from the New York State Department of Financial Services to add a host of cryptocurrencies to its product offerings. ItBit will now begin offering custody, escrow, OTC trading as well as exchange services for BCH, ETH, LTC, and XLM in addition to Bitcoin, which it already offers.
In a press release, ItBit, which is based in New York said: “Global crypto asset platform Itbit announced today it has received approval from the New York State Department of Financial Services (NYDFS) to offer expanded trading and custody services for Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC) and Stellar Lumens (XLM). ItBit will start immediately offering custody, escrow and OTC trading services for these new assets, with platform exchange trading to follow”.
ItBit had only offered Bitcoin products before this new development. COO Andrew Changing said that by gaining this regulatory approval, the company would be able to open the doors for individuals and institutions to access new crypto assets beyond just Bitcoin.
Incidentally, Itbit became the first Bitcoin exchange to be granted a banking license by the New York Department of Financial Security in May 2015. This license allows the exchange to conduct operations in all 50 US states under the banking laws in New York. This was revealed by Itbit’s CEO at the time, Chad Cascarilla.
A visit to ItBit’s website shows several services such as a fully-fledged cryptocurrency exchange, OTC trading, and custody services. The company also states that all US dollars are FDIC-insured, while all fiat and Bitcoin customer assets are fully protected and backed by mandatory capital reserves. The exchange also offers escrow transactions and recently raised $65 million through an IPO at the end of May.
Last week, the U.S. Commodity Futures Trading Commission (CFTC) apparently demanded trading data from Itbit and three other crypto exchanges since Bitcoin futures provided by CME Group, which it regulates, derive their value from them.
Jay is pretty interested in the crypto space. He’s written for several publications on the topic and has lots of ideas on how the world can be made a better place with blockchain technology. He’s also a fintech journalist with some years of experience and enjoys writing about new startups, ICO’s as well as any other intriguing news that catches his fancy.