The New York Department of Financial Services has rejected Bittrex’s application for a BitLicense. The regulator revealed that it has rejected the Seattle-based crypto exchange’s application in a letter recently published.
NYDFS Rejects Bittrex BitLicense in a Letter
In the letter, the NY regulator blames the rejection on a lot of factors. This rejection marks the first in two years by the NY regulator.
Daniel Sangeap, the deputy superintendent and deputy counsel at NYDFS wrote that:
“Throughout Bittrex’s application process, the Department worked steadily with Bittrex to address continued deficiencies and to assist Bittrex in developing appropriate controls and compliance programs commensurate with the evolving nature of the sector,”
Sangeap continued that:
“The regulator “issued several deficiency letters” since the exchange first submitted an application, addressing Bittrex’s anti-money laundering procedures, Office of Foreign Assets Control compliance and its coin listing process. However, a number of concerns remained unaddressed.”
The letter further stressed that “Bittrex’s current policies and procedures are either non-existent or inadequate,” questioning the “level of authority and effectiveness of the Compliance Officer, ”. It continued the exchange likely has an inadequate training program for employees and raising a number of other issues.
Bittrex has however released a statement addressing and disputing the NY regulator’s findings. The exchange also made it known that several of the concerns stated in the regulator’s letter is currently being addressed by it.
NYDFS’s Sampling is From Two Years Ago
The exchange also made sure to clarify that the NY regulator’s review came from 2017 and that the exchange has improved significantly on its customer identification processes since then. It has gone as far as deleting account which doesn’t meet up with its stringent verification standards.
The exchange also made it clear that it has even reported its Iranian customers to OFAC since early last year.
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