The controversial Bitstamp regulations recently passed in New York, spearhead 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 […] 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.