Bitcoin exchange OKCoin decided to stop accepting deposits from US customers due to regulatory pressure. Keep in mind that several states such as California and New York have been gaining traction when it comes to enacting cryptocurrency regulation among firms.
However, the Chinese bitcoin exchange said that this measure will just be temporary. The company did not specify when the restrictions will be lifted or what they are doing to meet any requirements.
Regulations for Bitcoin Exchange Companies
In New York, BitLicense requires several licenses or permits to be secured before a bitcoin exchange can conduct operations in the state. This has led several startups to close shop or to move their base elsewhere in order to avoid strict regulation and high fees.
“The latest change is part of an internal review we made on our policies and affects Level 1 individuals who self-indicated as US citizens,” said OKCoin international head Jack Liu. He added that the move was voluntary.
For now, US customers of the bitcoin exchange will see the following message when making deposits in bitcoin, litecoin, or the US dollar: “Notes: Due to regulation, we don’t accept the charge from the US.”
OKCoin was founded in 2013 and received a $1 million angel investment from Ventures Lab and Silicon Valley Venture Capitalist Tim Draper. In December 2013, OKCoin closed a Series A round of funding in which it received $10 million from Ceyuan and Mandra Capital. In early March 2014, OKCoin reached a BTC transaction volume of roughly 293,000 BTC and an LTC transaction volume of roughly 12.9 million LTC, the highest cryptocurrency trading volume ever seen.
Back in July last year, the bitcoin exchange started accepting US deposits and withdrawals. Because of this, the company created an international site with an English language customer service to cater to its clients abroad, particularly from the US market.