Winklevoss Twins Launch New Bitcoin Exchange Gemini
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The twins, who became famous after their legal battle with Mark Zuckerberg, the founder of Facebook, launched Gemini on October 8, Thursday.
Bitcoin to Become Safer
Although Bitcoin has been criticized for its volatile and insecure nature, the twins feel that their exchange has incorporated ample safeguards to enable the full unleashing of the cryptocurrency’s potential. Tyler Winklevoss said: “We built with a security mentality from Day One.”
Cameron Winklevoss said that the new exchange comes with “the highest regulatory policies and capitalization requirements.” It also implements the best anti-laundering measures and background checks of users.
The brothers said that the exchange will give market makers and hedge funds a secure platform to start investing in bitcoins.
Gemini Gets NY License
The New York State Department of Financial Services has granted Gemini Trust Company the license to function as “a chartered limited liability trust company.” The charter allows Gemini to function as a bitcoin exchange with effect from 9:30 a.m. ET on October 8, Thursday.
Anthony J. Albanese, the acting superintendent of the NY regulator, said: “In New York, we are continuing to move forward on licensing and chartering virtual currency firms. Smart, targeted regulation that helps protect consumers and prevent illicit activity is vital to the long-term future of this industry.”
The Winklevoss twins had applied for a license to operate a trust company in July. Trust companies are financial institutions that differ from banks. New York’s banking laws give trust companies all the powers enjoyed by banks to accept deposits and sanction loans in addition to some fiduciary powers. Gemini is required to maintain a capital reserve just as any other fiduciary business.
The company said that it will take custody of deposits made in bitcoins and store most of them in multi-signature, geographically distributed, offline cold storage systems. Deposits in fiat currency will be deposited in a chartered bank, which has its headquarters in Manhattan.
More about Gemini
Cameron and Tyler Winklevoss told Fox Business Network: “Gemini is basically a Nasdaq for bitcoin buying and selling. Just like you sign onto E*TRADE and buy a share of Apple, you can into Gemini … and you can buy and sell bitcoin.”
The twins said that the focus of the new bitcoin exchange is on security and licensing. Tyler said that bitcoin like all other new technologies has its own growing pains and that Gemini intends to put an end to Bitcoin’s Wild West phase. He said that they have been discussing the issue with regulators for more than one year and that the exchange is fully licensed.
Cameron said that there will be no constraints with regard to Bitcoin as it lacks borders and is considered to be a global currency.
The twins plan to expand Gemini to countries all over the globe, starting with the US and its territories and then moving on to Asia and Europe.
