New York State Department of Financial Services. Bitfinex, the largest bitcoin exchange has decided to stop its services in New York.
The grace period for bitcoin and digital currency based companies to apply for BitLicense in New York State expires in few hours. While few big companies decided to adhere to the regulations and maintain their foothold in New York, some of them have decided to pull out of NY jurisdiction.
Companies like ShapeShift and Eobot withdrew from New York long before the deadline. Another small bitcoin exchange Poloniex announced its decision to move out of the state recently. Now, one of the “big fishes” of bitcoin industry — Bitfinex has decided not to comply with the regulations and announced its decision to forego NY bitcoin market for the time being, until the regulatory environment becomes more favorable.
In an announcement on its site, Bitfinex has advised its customers from New York to withdraw their cryptocurrency balance from the platform before August 15. The company mentions specific sections of New York Codes, Rules and Regulations stating that any business dealing with virtual currency must apply for BitLicense within August 10th, 2015 and Bitfinex is not ready to apply