Bitcoin companies had until last Friday to make an unenviable choice: Either spend about $55,000 applying for a BitLicense—and commit to shelling out for ongoing compliance fees—or get the hell out of New York State.
Many are getting the hell out of New York State.
One of the last to announce its departure was Genesis Mining, which explained its move in a blog post:
While advocates for the BitLicense say they want to protect consumers, what the act really does is stifle innovation. It’s complex, expensive, and comes with a set of guidelines that make it nearly impossible for any startup to comply with.
While 22 companies submitted applications, 10 announced they were shutting off service for customers in New York State rather than apply for a BitLicense. The list includes Kraken, GoCoin, ShapeShift, LocalBitcoins, and BitFinex.
In a blog post, LocalBitcoins explained it simply didn’t have the money to participate:
As the Bitlicense is time consuming, expensive and difficult to obtain for anything but large companies we’ve taken the decision to protect our US based traders and not allow New York based users to use our service.
The Bitcoin exchange Coinsetter, which