Poloniex Leaves New York Due To BitLicense

Poloniex, a U. S. -based cryptocurrency exchange, has left New York due to the restrictions and limitations of the state's BitLicense. Including Poloniex, three bitcoin startups have shut down their operations in New York during the past few months and declined to comply with BitLicense, a set of rules that restricts operations of Bitcoin exchanges and demands startups to pay fees to operate legally. Size. For a relatively small exchange or startup like Poloniex, BitLicense's requirement for Bitcoin startups to pay a $5,000 non-refundable application fee to operate and continue their....

New York has started implementing its BitLicense recently, much to the dismay of bitcoin startups that are unable to come up with enough funds to obtain licenses for its products. In fact, Poloniex, a NY-based bitcoin exchange, recently decided to move its operations elsewhere due to the limitations imposed by the regulatory framework. BitLicense was drafted and put in force by the New York Department of Financial Services under the leadership of former head Benjamin Lawsky. After its implementation, Lawsky then resigned from his post to form a consultancy group. BitLicense and Bitcoin....

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....

Genesis Mining is the latest company to announce its departure from New York, following the formal introduction of the state's BitLicense. In a blog post released yesterday, the cloud mining firm - which claims to serve over 50,000 customers - said it had no choice but to block anyone with a New York IP address from using its services. 'While advocates for the BitLicense say they want to protect consumers, what the act really does is stifle innovation. It's complex, expensive, and comes with a set of guidelines that make it nearly impossible for any startup to comply with.'

The digital currency ecosystem in New York State is currently hanging on a string as the deadline to apply for BitLicense closes. Today, the 8th of August 2015 marks the end of 45 day grace period extended to Bitcoin and digital currency companies in the state to apply for BitLicense. Few Bitcoin companies like ShapeShift, Eobot and Poloniex have already left New York State for good. ItBit became the first company to receive BitLicense and Gemini, the exchange whose promoters are Winklevoss Twins is still awaiting confirmation. All these companies falls on either side of the spectrum,....