Gemini Trust Company, the first virtual currency exchange to be regulated in the New York State, was authorized by the NY State Department of Financial Services to offer the custody services and trading of Zcash, Litecoin and Bitcoin Cash.
Financial Services Superintendent Maria T. Vullo made the official announcement that gives the Winklevoss twins’ exchange permission to deal emerging cryptocurrencies on its trading platform based in New York City.
Department of Financial Services Superintendent Maria T. Vullo, commented:
“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 said,
“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.”
The Zcash network is known for its anonymity features, making it a favorite for tax avoidance and criminal ventures such as drug and weapons trading, alongside Monero.
The Zcash network supports two kinds of transactions, transparent and shielded.
Similarly to Bitcoin, the transparent transactions supported by the Zcash network provide a publicly visible balance on the blockchain as well as the amounts of the transaction. These transactions are no concern for the financial watchdogs and law enforcement.
Shielded transactions, however, utilize z-addresses and are entirely private. These transfers do not appear on the public blockchain. Shielded transaction have become a headache for the authorities worldwide.
Gemini, as a limited purpose trust company chartered under New York State Banking Law, can launch Zcash trading immediately, subject to ongoing supervision by the state. Gemini has also been approved for potential future offerings of Litecoin and Bitcoin Cash.
The trust charted issued in October 2015 to Gemini by the Department of Financial Services allows the exchange 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.
After a nearly two-year inquiry into the appropriate regulatory guidelines, the Department published its final virtual currency rules in June 2015. Cryptocurrency license applicants face rigorous scrutiny over its anti-money laundering, capitalization, consumer protection and cybersecurity standards.