Where other cryptocurrency exchanges fail to offer regulatory assurance to large institutional investors, ItBit is confident it can win. Just recently ItBit has become the first bitcoin exchange to operate legally in U.S. receiving a license from the New York State Department of Financial Services

The New York-based startup decided to go even further and announced that it would provide its services to consumers in all 50 U.S, states. It will now need to apply for a license in each of the states. ItBit is a bitcoin exchange platform, emphasizes project’s founder and CEO Charles Cascarilla, not a money transmitter. It operates uniquely as an agent holding users’ digital wallets, and the assets can only be withdrawn by users themselves.

“We're purely an agent, we're a custodian and fiduciary. There's a variety of exchanges and exchange clearing organizations that are organized as a New York trust and operate on a global basis using that charter,” he said. Even though creating a trust company gives ItBit a bank-like status, it is not going to provide loans. It seems the new much needed status is there to provide customers with a feeling of extra security.

The bitcoin trading market is big enough for everyone to fit in, says ItBit’s founder and CEO Charles Cascarilla, radiating confidence as he speaks. “I don't think bitcoin is a small opportunity set,” he revealed in an interview to CoinDesk. The reason behind his generosity towards his competitors is likely the considerable market share ItBit would have. According to Cascarilla, the total value of cryptocurrency transactions hosted by ItBit daily reaches nearly $5.5 trillion in foreign exchange (FX). And indeed, the competition is tough with Gemini and Coinbase being always around.

ItBit boasts being the only regulated entity in the entire bitcoin world, and the projects CEO sees cooperation with the state and integration with the financial system as the only way to move ahead.

“Mainstream adoption is not going to happen if you circumvent the financial system, you're going to have to be a participant in it. That doesn't mean bitcoin isn't disruptive. It is in important and very valuable ways, but that disruption will never be able to reach its full potential unless you're able to interface with the system.”

 

Tatiana Ilyina