Digital currency exchange ShapeShift has announced it has suspended service to all residents in New York state following the Department of Financial Services’ release of its BitLicense.
In a press release provided to CoinReport, the company said, “NY’s new anti-competitive licensing scheme, which targets a wide swath of digital currency and blockchain-based financial firms violates consumer protections and put users at risk.”
ShapeShift raised concerns about the risk of hackers of identity theft BitLicense poses.
“Identity theft is an epidemic, more costly to society than many other forms of theft and crime,” said ShapeShift CEO Erik Voorhees in the press release. “It is pervasive because the antiquated financial system–based on credit cards and banks–only works when personal information is attached to your transaction. Bitcoin has finally solved this problem, by enabling 100% secure transactions without attaching your private information. Now, New York wants to mandate that consumers continue to be put at risk, even though technology has provided a solution to identity theft.”
In response to BitLicense, ShapeShift is rerouting all website