Bittrex Bitcoin Exchange was denied a license to provide services in the state of New York (updated)

The New York State Financial Services Authority (NYDFS) rejected the Bittrex Bitcoin Exchange (Seattle, USA) application for a license to conduct virtual currency activities (BitLicense). The ministry considers the company's policy of legal compliance to be inadequate or completely non-existent, and the competence of the authorized top manager is questioned.

Within the framework of the cooperation, NYDFS sent Bittrex several letters in which it laid out the shortcomings, in particular, in the AML-procedures, but the stock exchange left some comments of the department without attention.

Thus, the agency provided the trading floor 14 days to terminate all operations in the territory of the State of New York, as well as develop a plan to suspend work with its residents.

Also, the exchange has only 60 days to transfer funds to residents of New York, who are in the custodial vault.

APDATE

In Bittrex, negligence claims against the regulator’s claims were refuted and stated that this behavior of NYDFS does not protect users from New York, but only harms them.

Statement on the New York Department of Financial Services (NYDFS) Decision. Learn more: https://t.co/BZzwCOWqOd pic.twitter.com/Fths61aiI7

– Bittrex (@BittrexExchange) April 10, 2019

Recall the day before BitLicense was received by one of the oldest European exchanges Bitstamp.

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