25 states issue licenses for Bitcoin exchange

The startup’s founders have managed to gain licenses from half of the states’ financial regulators, including (importantly) both New York and California.

After having its fair share of bad press, the virtual currency Bitcoin is finally pulling itself back together. The startup which was initially funded by $106 million from the New York Stock Exchange as well as banks and venture capital firm is now all set to launch the first licensed US bitcoin exchange. Coinbase confidently claims that with such a medium, traders are going to feel more secured about their transactions and will also be able to monitor real-time pricing of the world’s foremost cryptocurrency.

The currency however, does have the tendency to fluctuate on quite some varying scales and that it because the bitcoin is entirely virtually traded and there is no involvement of a central government. Investors surely didn’t have a good time with the collapse of Mr. Gox last year after they had to face a loss of nearly half a billion dollars.

The surprising news is that half of the states’ financial regulators have issued licenses to make thr bitcoin exchange legal and one of the most noteworthy successes of the founders of the virtual currency is that they have managed to include some pretty influential and big states too such as New York and California. The exchange will only be allowed in these states which have issued the licenses because these will be the only places where it is made legal.

source: wsj