Bittrex Users in New York Forced to Transfer Funds After BitLicense Rejection
Seattle-based cryptocurrency exchange Bittrex dropped its trading fee to 0% on Thursday for New York residents to help them move their funds from their platform following the rejection of the exchange’s BitLicense application by New York Department of Financial Services (NYDFS).
In a recent post, Bittrex explained that the NYDFS denial requires the exchange to suspend operations in the state immediately. The official rejection document released by the NYDFS states the denial was due to Bittrex’s anti-money laundering (AML) and compliance practices — in addition to the exchange failing to agree to meet the capital requirement.
Perhaps more alarmingly, the third reason for denial involves Bittrex’s listing due diligence process or lack thereof. The NYDFS claims to have been unable to determine whether Bittrex had actually applied its own review policy to the 15 tokens chosen in the random sample. Additionally, several projects refused to complete the listing application or didn’t start it at all and Bittrex listed them anyway.
“We adamantly disagree with NYDFS’ claims and allegations in regard to our anti-money laundering (AML) and compliance practices,” said Bittrex. “Corporate responsibility is in our DNA and our commitment to regulatory and compliance guidelines is second to none. More specifically, today’s letter contains several factual inaccuracies that we feel must be addressed.”
Well I dumped everything that couldn't be dumped elsewhere. I really feel like sending a bill to NYDFS for these loses. So many unforeseen factors in this business. All other coins have or will be transferred to cold wallets or spread out across multiple exchanges.
— Bitcoin Dood (@BitcoinDood) April 11, 2019
This news, which is fairly surprising based on Bittrex’s reputation, comes several days after Luxembourg-based crypto exchange Bitstamp was granted a BitLicense.
Bittrex notes that it plans to continue pursuing a BitLicense in order to continue offering its services to New York residents.
Image: Marco Verch / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.