In an ongoing trend of Bitcoin companies withdrawing their services from New York in response to the BitLicense, two more businesses have exited the Empire State. The latest Bitcoin startups that refused to apply to the controversial regulation are Philippine centered remittance service Rebit and mining specialist Genesis Mining.
Both Rebit’s parent company Satoshi Citadel Industries and Genesis Mining announced their departure from New York through blog posts on their respective websites. The companies both cite the newly imposed BitLicense regulation in the state as the reason for their departure.
“As of August 8th, 2015, the state of New York announced the implementation of the BitLicense, a state regulation which makes it a federal offense to sell virtual currency to anyone in New York unless you have applied for the license. Since our rebittance service Rebit essentially works by having customers sell their bitcoins to us and nominating their cash recipients in the Philippines, we are forced to take a precautionary stance by not entertaining business coming from the State of New York, both for our business compliance and for you, our customer’s protection from legal repercussions.”
Meanwhile, Genesis Mining notes:
“Genesis Mining will not be able to comply with the regulations set forth by the proposed BitLicense and as such, we will no longer be able to accept customers from the state of New York. All current customers will be able to continue their services, but going forward, no one with an IP address from the state of New York will be able to purchase hashpower contracts with us.”
Rebit and Genesis Mining are the newest additions to a list Bitcoin companies unable or unwilling to apply for the BitLicense. The reasons for this denouncement are varied, but often include the