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Re:Bitcoin Exchange Receives First License in New York State by bbanyc on Thursday May 07, 2015 @01:51PM (#9506916)
It's a limited-purpose trust company - it can only accept assets as trustee and cannot hold cash as a customer deposit. Because depositors' funds aren't at risk, these entities don't have to join the FDIC and are exempt from some other regulations.

I guess because itBit acts as a custodian for Bitcoins and not just a transmitter, the DFS thought it was a closer fit than a money transmitter license.

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