Bitcoin Exchange ShapeShift Shuts Down NY Operations, Protesting 'BitLicense'
Erik Voorhees-led Bitcoin exchange ShapeShift has decided to shut down its New York City operations, protesting the recently released Bitcoin regulations, CNBC reported today. The final BitLicense regulation demands that Bitcoin businesses record personal information of its users (through the KYC norm) and the cryptocurrency swapping place is not comfortable violating its policy of not storing any personal information of its customers. ShapeShift CEO Erik Voorhees told CNBC that, "We either would have to do something we're not comfortable with or leave New York. It's a moral and ethical....
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ShapeShift, a popular cryptocurrency exchange based in Switzerland, terminated its services in New York today, due to the state’s BitLicense regulations for digital currencies. Erik Voorhees, Shapeshift Founder and CEO, told CNBC: Voorhees has decided not to to comply with the BitLicense, explaining that ShapeShift is not willing to take the risk of exposing its users’ personal information, leaving them susceptible to potential data breaches or hacking attacks. The exchange is known for its ease of use because it doesn’t require users to create accounts. "We either would have to do....
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 Bitcoin regulation in New York will be affecting many digital currency companies for quite some time to come. And by the looks of it, one company is already halting all of their services in the state of New York, as a protest against the BitLicense regulation. ShapeShift feels the time has come to take a stand against this “immoral and unethical” regulation of Bitcoin. When the final version of New York’s BitLicense was revealed, many Bitcoin enthusiasts were rather unhappy with the outcome. It goes without saying this regulation could be very harmful to Bitcoin-related companies....
The New York Department of Financial Services has released the application for a "License to Engage in Virtual Currency Business Activity" more commonly known as the Bitlicense. You can view it here (PDF). Bitlicense Controversy. The Bitlicense application is 31 pages. I just checked my handy bible, and Genesis is only 33 pages. God needed 2 more pages to create the world than Ben Lawsky needs to vet Bitcoin companies. In case you're not familiar, Ben Lawsky is a former regulator who is primarily responsible for the new virtual currency regulations in New York. Eric Voorhees, CEO of....
MonetaGo, one of the US-based Bitcoin exchanges, has announced they will be shutting down for good. The company tweeted that regulation was a key hurdle it could not overcome. UPDATE: MonetaGo confirmed they will only shut down the exchange part of the business. As most Bitcoin enthusiasts are well aware of, running a financial company in the US requires....