Bitcoin Exchanges Kraken and Bitfinex Cut Services in New York
An earlier version of this article indicated that Bitstamp, not Bitfinex, had withdrawn services from New York. Kraken and Bitfinex, two of the largest bitcoin exchanges by investment funding and daily trading volume, have indicated they will not be applying for licenses to operate in New York. The development is the latest in the ongoing debate over the BitLicense, New York's state-specific regulation for bitcoin businesses, which continues to be a lightning rod for criticism from both within the bitcoin community and more widely among mainstream technology advocacy groups. State....
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Bitcoin exchanges Kraken and BitFinex has decided to discontinue their services in the New York City. With the announcement, the two exchanges joined the ranks of a one-too-many Bitcoin companies that have left the Empire state citing concerns with its recent licensing act, the BitLicense. Enacted and imposed by the New York Department of Financial Services (NYDFS), the new digital currency regulatory framework has raised many eyebrows for allegedly impeding the growth of FinTech startups. Kraken highlighted it amusingly in its Sunday's blogpost, calling BitLicense a "creature so foul, so....
San Francisco-based bitcoin exchange Kraken has announced the dismissal of its service in New York due to the state's BitLicense and strict regulations for financial exchanges. "Regrettably, the abominable BitLicense has awakened. It is a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth. It's at least a 40-man, bro," the Kraken team wrote on their blog. According to the Kraken team, some of the reasons for their decision include no user-support from New York banks, no guarantee of enforcement against unlicensed....
Yet another bitcoin startup left New York State and declined to comply with the BitLicense. BitFinex, the largest cryptocurrency trading platform in the U.S has followed the lead of Poloniex and Shapeshift, announcing the closure of their operations on their blog this week. The BitFinex team wrote: BitLicense requires any digital currency related startups and exchanges to pay US$5,000 in application fees, US$20,000 in legal fees. “Due to financial regulation changes in the State of New York, certain Bitfinex services are no longer available for New York Residents. Bitfinex is not applying....
Image Copyright 2015 Kraken. Throughout history, legislation and regulations pertaining thereto have been passed amid significant dissent. The Bitlicense proposal, from start to finish, might serve as a thorough example, leaving out none of the telltale characteristics: a) insular and limited information gathering techniques; b) lack of definitive necessity; c) unintended consequences (below). Friday, professional trader-friendly Bitcoin exchange Bitfinex announced to clients residing in New York that all remaining deposits would be liquidated to cash at then-market rates on Friday.....
Jesse Powell, Kraken CEO, talks more in detail about why he decided to shut down Kraken’s headquarters in San Francisco. Kraken was one of the pioneering Bitcoin exchanges. They had this headquarters too in New York. However, New York announced a strict BitLicense regulation in 2015 which prompted Powell to remove Kraken from the Big […]