LocalBitCoins Stops Service for New York Residents

Peer-to-peer bitcoin exchange LocalBitCoins has joined the exodus of companies exiting the state of New York refusing to comply with the BitLicense.

Farewell New York

There has been a torrent of activity over the last few days over the August 8 deadline for declaring corporate compliance with New York’s infamous BitLicense regulation.

Many companies have chosen to opt-out of the regulation and the New York State market altogether. This verdict seems to also apply to the popular Bitcoin wallet provider and peer-to-peer exchange LocalBitCoins.com, who has posted a message on their site regarding this lightning rod legal issue.

The Localbitcoins community manager, Max, posted this statement publicly:

“We’re sad to say that due to regulators another region has had to be blocked from LocalBitcoins. From today onwards users from New York are no longer allowed to use LocalBitcoins because of the legislation known as the BitLicense (23 NYCRR 200) which makes it a federal offense to sell virtual currency unless you have applied for the license. 

This new regulation would require anyone selling Bitcoins through our service to acquire the Bit License if they sell Bitcoins to residents of New York. As the Bit license is

Read more ... source: Cointelegraph