Bitcoin Exchange Gemini Leverages Banking Charter in Washington State Launch

Bitcoin exchange Gemini took an unusual path to extending its services to Washington state customers this week.

AccessTimeIconJun 15, 2017 at 10:00 a.m. UTC
Updated Aug 18, 2021 at 6:19 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The New York State Department of Financial Services (NYDFS) has granted Gemini Trust, a New York-licensed bitcoin and ethereum exchange service, permission to serve customers in Washington State.

Maria T Vullo, the NYDFS superintendent, said in a statement that the approval was the result of a collaboration between her agency and the Conference of State Bank Supervisors – a nationwide institution that supervises state-chartered financial institutions.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Gemini is now operating in most US states, with the exception of Alaska, Arizona, Hawaii, Oregon and Wisconsin.

    Key to Gemini's permission to serve Washington was its trust charter, granted in New York in 2015.  On application, the exchange's founders, investors Cameron and Tyler Winklevoss, preferred that option to the state's 'BitLicense', arguing it allowed a wider scope of businesses to be served.

    The exchange was following in the footsteps of itBit (now Paxos) – the first digital currency firm to seek a charter in the state. At the time, the startup made the argument that a charter would enable it to offer services in more states without applying for licenses state by state.

    The approval comes two months after Washington passed Senate Bill 5031, which requires some digital currency businesses to comply with the state money transmitter laws and exchanges to obtain licenses.

    The new rules will become effective from 23rd July, 2017.

    While a small update, the decision has potentially major implications for cryptocurrency startups that may be classed as money services businesses or money transmitters.

    In response to the passage of the bill, Gemini competitors including Poloniex and Bitfinex announced they would no longer do business with customers residing in Washington.

    Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Paxos.

    Washington flag image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.