BitLicense Casualty: LocalBitcoins Exits New York
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....
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Peer-to-peer bitcoin exchange LocalBitCoins has joined the exodus of companies exiting the state of New York refusing to comply with the BitLicense. There has been a torrent of activity over the last few days over the August 8 deadline for declaring corporate compliance with New York’s infamous BitLicense regulation. Many companies have chosen to opt-out of the regulation and the New York State market altogether. This verdict seems to also apply to the popular Bitcoin wallet provider and peer-to-peer exchange LocalBitCoins.com, who has posted a message on their site regarding this....
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....
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....
The world's largest peer-to-peer bitcoin marketplace Local Bitcoins and bitcoin marketplace BitQuick have terminated their services in New York due to the strict restrictions and fees demanded by New York's BitLicense. Local Bitcoins is a unique case; as every single seller on Local Bitcoins would be required to pay $5,000 to apply for BitLicense. The Local Bitcoins team wrote on their blog:"From today onwards users from New York are no longer allowed to use LocalBitcoins because of the legislation known as the BitLicense (23 NYCRR 200) which makes it a federal offense to sell virtual....
Coinbase has submitted an application for a BitLicense in New York State, making it one of the leading bitcoin businesses to seek the necessary regulatory approval. Coinbase advised CCN of its action in the wake of plans by other cryptocurrency businesses - such as LocalBitcoins, BitFinex and Kraken - to bolt New York due to the controversial regulation. The law prohibits the sale of bitcoin without a license. "We can confirm that Coinbase has submitted a BitLicense application," a Coinbase spokesman told CCN. "The process was a significant undertaking, but we're fortunate to have the....