Residents of New York State will not be able to use the best bitcoin based services anymore. Thanks to BitLicense and New York State Department of Financial Services. Bitfinex, the largest bitcoin exchange has decided to stop its services in New York.
The grace period for bitcoin and digital currency based companies to apply for BitLicense in New York State expires in a few hours. While few big companies decided to adhere to the regulations and maintain their foothold in New York, some of them have decided to pull out of NY jurisdiction.
Companies like ShapeShift and Eobot withdrew from New York long before the deadline. Another small bitcoin exchange Poloniex announced its decision to move out of the state recently. Now, one of the “big fishes” of bitcoin industry — Bitfinex has decided not to comply with the regulations and announced its decision to forego NY bitcoin market for the time being, until the regulatory environment becomes more favorable.
In an announcement on its site, Bitfinex has advised its customers from New York to withdraw their cryptocurrency balance from the platform before August 15. The company mentions specific sections of New York Codes, Rules and Regulations stating that any business dealing with virtual currency must apply for BitLicense within August 10th, 2015 and Bitfinex is not ready to apply for it yet. The account privileges for New York residents will be changed once the deadline is reached.
Another famous bitcoin exchange, Kraken has also announced that it will be bidding farewell to New York. The San Francisco based bitcoin exchange refers to the current regulatory nightmare in New York as a foul and cruel creature which even Kraken can’t face. Kraken lists the various shortcomings of BitLicense in its current form and concludes that the cost of getting a BitLicense will exceed the market opportunity offered by New York. The company asks New York based users to leave the state to make use of their services.
However even Kraken is open to restart its operations in New York if the BitLicense regulations become more favorable in the near future.