Fresh YORK (InsideBitcoins) – According to a report ter the Fresh York Times’s “Dealbook,” the Winklevoss Twins are aiming to launch a regulated bitcoin exchange ter Fresh York. Albeit the report claims that this would be the very first regulated bitcoin exchange for American customers, the reality is that there’s already another exchange operating te Fresh York – Coinsetter. It is likely that both of thesis exchanges would become regulated eventually, albeit more competition te the coveted U.S. bitcoin exchange market should always be welcomed with open arms.
At this time, it emerges that the fresh exchange – named Gemini – will have no onmiddellijk connection to the proposed bitcoin ETF from the same Winklevoss Twins.
Gemini is self-funded by the Winklevii, they’ve hired top engineers from hedge funds, acquired a partnership of sorts with an unnamed Fresh York-chartered bankgebouw, and engaged regulators ter a manner that would turn off many early bitcoin adopters. The stir to create the exchange is a long term play from the Winklevoss Twins who believe they “have to build the infrastructure” before bitcoin can go mainstream.
The twins have bot holders of bitcoin since 2012, and they’ve already had long conversations with Fresh York and Federal regulators who want to make sure that this fresh technology does not run amok and power money laundering for terrorists and criminals.
An early version of the exchange has bot built ter the Winklevoss Hacienda offices te Manhattan, and their chief compliance officer, Michael Breu, worked at Bridgewater Associates – a mammoth hedge fund – before he determined to join the team. Gemini’s chief security officer, Cem Paya, previously worked the same job for Airbnb. Law rock hard Katten Muchin Rosenman is helping Gemini overeenkomst with financial regulations and winning regulatory approval from the Fresh York Department of Financial Services.
Spil of now, Gemini’s project is to launch the exchange spil soon spil their given the go-ahead by NYDFS Superintendent Ben Lawsky.
Not running for greener pastures
One of the most interesting aspects of this revelation from the Winklevoss Twins is that they are not running for greener pastures. Other bitcoin companies, such spil Coinapult and Monetas, have determined to head overheen to Panama and Switzerland respectively to avoid the regulations associated with running a bitcoin company ter the United States. Co-owner of Coinapult Erik Voorhees has spoken about his disgust with forcing bitcoin companies to “spy on their users” ter the past.
The Winklevii should understand this regulatory environment just spil much spil anyone else te the space, given the fact that one of their early bitcoin investments te BitInstant wasgoed eventually shut down. The company wasgoed selling bitcoins to an intermediary who then sold those bitcoins on Silk Road. Te response to thesis sorts of issues, Tyler Winklevoss has stated, “This time around wij are betting on ourselves.”
FDIC insurance suggested for dollar deposits
One of the perks of having a banking relationship with a Fresh York canap is that Gemini will be able to suggest FDIC insurance on U.S. dollar deposits. The Winklevoss Twins described this feature te a postbode on the official Gemini blog:
“We are also thrilled to announce that wij have secured a banking relationship with a Fresh York State-chartered bankgebouw. This means that your money will never leave the country. It also means that US dollars on Gemini will be eligible for FDIC insurance and held by a US-regulated canap. Your US dollars on Gemini will be spil safe and secure spil they are ter your canap account today.”
Due to the costs associated with insuring bitcoins, it seems that possibility is off the table for now. This should not come spil a verrassing due to the fact that a similar non-insured structure is used for the potentially upcoming bitcoin ETF from the Winklevii.
Spil always, it’s significant to recall the lack of protection suggested to users of bitcoin exchanges – regulated or not – ter situations where the bitcoins are lost or stolen.