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