Poloniex, a U.S.-based cryptocurrency exchange, has left New York due to the restrictions and limitations of the state’s BitLicense.
Including Poloniex, three bitcoin startups have shut down their operations in New York during the past few months and declined to comply with BitLicense, a set of rules that restricts operations of Bitcoin exchanges and demands startups to pay fees to operate legally.
For a relatively small exchange or startup like Poloniex, BitLicense’s requirement for Bitcoin startups to pay a $5,000 non-refundable application fee to operate and continue their services in New York is not an easy demand to satisfy.
“There are always pros and cons to regulations like BitLicense, but from a small business perspective, BitLicense is both limiting and frustrating,” Poloniex founder Tristan D’Agosta told Bitcoin Magazine. “For a small business like ours, a $5,000 non-refundable application fee is a nonstarter. Consider what would happen if every state in the union followed suit – it would cost $250,000 just to apply for licenses in all 50 states.”
Furthermore, the current “version” of