BitFinex Exits New York due to BitLicense
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....
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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.....
Bitcoin regulation in the state of New York remains a topic of heavy debate, as the latest company to halt its services in the state is none other than LocalBitcoins. The largest Bitcoin peer-to-peer marketplace in the world is being hindered by the BitLicense regulations put in place earlier in 2015. Whether people like or dislike the idea of regulating Bitcoin at all, BitLicense is definitely an example of how it should not be done. Hash regulatory measures, combined with hefty license application fees and invading customer privacy does not sit well with most Bitcoin companies. Seeing as....
Note: this is a developing story. LocalBitcoins.com has discontinued service to New York State because of the state's BitLicense. LocalBitcoins.com joins BitFinex, Kraken and other cryptocurrency companies bolting New York on account of the law that prohibits the sale of bitcoin without a license. LocalBitcoins.com greets visitors with a popup window advising them to say whether or not they are New York state residents. The window provides a brief explanation of the regulation, 23 NYCRR 200, then asks them if they are a New York resident. Users then have to check a green-colored box saying....
UPDATE (10th August 10:16 BST): Since the publication of this article, bitcoin exchanges Kraken and Bitfinex have also confirmed they will not apply for a BitLicense to operate in New York. Bitcoin businesses wanting to continue serving New York residents have approximately 24 hours left to file their BitLicense application. The deadline, set for 8th August, marks the end of a 45-day grace period following the publication of the BitLicense in the New York State register. Formulated by the New York State Department of Financial Services (NYDFS), the long-awaited regulatory framework has....
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....