Financial Services Superintendent Maria T. Vullo announced on Monday the New York State Department of Financial Services has authorized Gemini Trust Company, LLC to offer the custody services and trading of Zcash, Litecoin and Bitcoin Cash, emerging cryptocurrencies, on its virtual currency exchange, which is based in New York City.
The Department of Financial Services reported that it issued a trust charter to Gemini in October 2015 to operate a virtual currency exchange through which Gemini customers may purchase and sell virtual currency for U.S. Dollars and U.S. Dollars for virtual currency. In June 2015, the Department published final virtual currency rules after a nearly two-year inquiry into the appropriate regulatory guidelines. Virtual currency license applicants are subject to a rigorous review of anti-money laundering, capitalization, consumer protection and cybersecurity standards. The organization explained:
“The Zcash network supports two kinds of transactions, transparent and shielded. Transparent transactions operate similarly to Bitcoin in that the balance and the amounts of the transaction are publicly visible on the blockchain. Shielded transactions utilize z-addresses and are entirely private. Transactions associated with z-addresses do not appear on the public blockchain. Zcash is the digital cryptography-based asset of the Zcash network, similar to how bitcoin is the digital cryptography-based asset of the Bitcoin network.”
Speaking about the authorization, Vullo stated:
“This action continues New York’s longstanding commitment to innovation and leadership in the global marketplace. With smart and thorough regulatory oversight, the development and long-term growth of the industry will remain thriving.”
Tyler Winklevoss, Chief Executive Officer, Gemini Trust Company, LCC added:
“We are proud be the first licensed exchange in the world to offer Zcash trading and custody services and look forward to providing customers with a safe, secure, and regulated place to buy, sell, and store Zcash, an incredible new form of digital cash.”