Coinbase to Stop Service in Wyoming Due to ‘Impractical’ Regulations
San-Francisco based bitcoin exchange Coinbase will be soon stop servicing customers in the state of Wyoming due to Wyoming Division of Banking’s regulatory standards that will make business in that state impractical, the company stated on their blog. The announcement reads: The state’s recently introduced Wyoming Money Transmitter Act requires services to hold a 25% fiat reserve in order to operate by law. This means they must cover at least a quarter of the amount of reserves in fiat. “Coinbase is indefinitely suspending its business in Wyoming.” With bitcoin being a relatively volatile....
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The Wyoming Banking Regulations have been pressing the Coinbase Exchange. Coinbase, a Bitcoin Wallet and Exchange Service Provider has announced the suspension of all operations in Wyoming as a result of state financial regulators' interpretation of the Wyoming Money Transmitter Act. The exchange already counts with operations serving more than 2.5 million users in 190 countries will now be forced to stop its operations in this State. Andrea Castillo, Mercatus Center Technology Policy Program Manager says Wyoming's banking policies are holding back innovative digital businesses like....
After rumors of Coinbase not working for users located in Wyoming, Coinbase has since come out with an announcement that they will be indefinetly suspending service to users in Wyoming. This comes from an issue with The Wyoming Division of Banking in which recently communicated regulatory policy causes uncertainty for the legality of digital currency operations. Coinbase, in their post stated: “Although we strive to provide continuous access to Coinbase services, Coinbase is indefinitely suspending its business in Wyoming. The Wyoming Division of Banking has recently communicated....
Bitcoin services company Coinbase recently decided to discontinue its services in Wyoming, after being capsized by the state's "impractical" demands. The Californian company briefly explained the issue on its blog, saying that the Wyoming Division of Banking expects Coinbase to be treated as a Money Transmitter Service, for it acts as a financial intermediary - a third party that holds the customers' funds on its online Bitcoin wallet. While this may seem very normal on layers, the real trouble lies in the fact that a licensee is further required to "maintain dedicated fiat currency....
San Francisco-based bitcoin company Coinbase has suspended operations in Wyoming until further notice. A company blog post cited the Wyoming Division of Banking's recent regulatory legislation as a decisive factor for ceasing business in the western US state, noting it would render continued operations impractical. "We understand that the Wyoming Division of Banking interprets the Wyoming Money Transmitter Act to require licensure of entities which offer hosted bitcoin wallet services, and that as a condition of such licensure, licensees must maintain dedicated fiat currency reserves in....
Lawmakers in the State of Wyoming have proposed a bill to require that cryptocurrency be treated the same as fiat currency under the state’s money transmitter’s act, according to the Wyoming Tribune Eagle. The purpose of the bill is to encourage bitcoin-friendly companies to want to do business in the state. Under the current law, a money transmitter that wants to conduct a bitcoin transaction has to hold in reserve the transaction amount in both fiat and in bitcoin; double the amount being sent. House Bill 26 would only require them to hold the amount being sent. The bill’s main sponsor,....