P2P Bitcoin Exchange LocalBitcoins Escapes the Empire State

localbitcoins-leaves-new-york-unsafe-regulation-hurtful-business Note: this is a developing story.

LocalBitcoins.com has discontinued service to New York State because of the state’s BitLicense. LocalBitcoins.com joins BitFinex, Kraken and other cryptocurrency companies bolting New York on account of the law that prohibits the sale of bitcoin without a license.

LocalBitcoins.com greets visitors with a popup window advising them to say whether or not they are New York state residents. The window provides a brief explanation of the regulation, 23 NYCRR 200, then asks them if they are a New York resident. Users then have to check a green-colored box saying they are not a New York resident or a red-colored box saying they are.

Also read: Bitcoin Exchange Kraken: Solidarity with Rival Bitfinex v. Bitlicense

LocalBitcoins.com is a cryptocurrency trading platform that allows users to buy and sell cryptocurrency with cash, credit cards, PayPal and cryptocurrency.

The BitLicense took effect on Aug. 8, 2015.

Cryptocurrency companies decided to stop doing business in New York State even before the law became effective. The New York Department of Financial services issued the final license rule following two years of debate.

It seems the application for the BitLicense alone discourages many who have looked at it.

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