ShapeShift, a popular cryptocurrency exchange based in Switzerland, terminated its services in New York today, due to the state’s BitLicense regulations for digital currencies. Erik Voorhees, Shapeshift Founder and CEO, told CNBC:
“We either would have to do something we’re not comfortable with, or leave New York. It’s a moral and ethical stand we’re going take.”
Voorhees has decided not to to comply with the BitLicense, explaining that ShapeShift is not willing to take the risk of exposing its users’ personal information, leaving them susceptible to potential data breaches or a hacking attacks. The exchange is known for its ease of use because it doesn’t require users to create accounts.
The New York Department of Financial Services (NYDFS) responded to ShapeShift’s announcement. Their spokesman stated:
“We always recognized that there is going to be some part of this community that is against even pretty standard financial regulatory oversight measures, such as anti-money laundering controls and other consumer protections. That said, one digital currency company has already received a license from NYDFS and a number of others have stated they intend to seek BitLicenses shortly. Ultimately,