Bitcoin Exchange Bitstamp Applying for BitLicense

Journalist:
P. H. Madore @bitillionaire
August 9, 2015

The controversial Bitlicense regulations recently passed in New York, spearheaded by former NY Department of Financial Services head Benjamin Lawsky, have stirred up their share of controversy in the Bitcoin community. Erik Voorhees of ShapeShift.io, an exchange that does not facilitate fiat-to-cryptocurrency trades, has compared the regulations to North Korean economics.

However you feel about the Bitlicense, the new paradigm is that cryptocurrency businesses serious about operating in the Big Apple will be forced to play by the rules. Bitstamp has decided that it falls into the “serious” category, as CEO Nejc Kodrič tweeted earlier today:

The news had mixed reception, with more than one of Kodrič’s followers saying their account would be closed in response. More interesting, a follower asked:

On Friday, Bitfinex announced that it would not be applying for a Bitlicense. New restrictions will be placed on clients based in New York State. Specifically:

We understand that this is an inconvenience, but users who do not remove their cryptocurrency holdings from their Bitfinex accounts by midnight UTC on August 15th, 2015 2015 will have their cryptocurrency balances exchanged to USD at market rates. […] We sincerely apologize for any inconvenience or issue that this may cause. We continue to monitor the evolving regulatory landscape in New York and elsewhere in an effort to offer superior service, consumer protection and security, and to remain compliant with applicable laws.

Images from Shuttestock, Bitstamp.

Last modified (UTC): August 10, 2015 00:28

Tags: bitstamp
P. H. Madore @bitillionaire

P. H. Madore has written for CCN since 2014. Please send breaking news tips or requests for investigation to bitillionaire+phm@gmail.com. He lives in Maine, USA. A single father of four young children, he does not discourage financial donations, provided they do not come with strings attached.