After the New York State Department of Financial Services (NYDFS) rejected the exchange’s BitLicense application, a requirement for offering crypto-based services to New Yorkers, Bittrex issues a response to the recent setback via a Press Release. They said :
“Bittrex is saddened and disappointed in today’s decision by the New York Department of Financial Services (NYDFS), which we believe harms rather than protects New York customers. Bittrex fully disputes the findings of the NYDFS in today’s decision. We have worked diligently with NYDFS to address their questions and meet their requirements since first applying for our BitLicense in August of 2015.
First, and foremost, we adamantly disagree with NYDFS’ claims and allegations in regard to our anti-money laundering (AML) and compliance practices. Corporate responsibility is in our DNA and our commitment to regulatory and compliance guidelines is second to none.”
The U.S.-based exchange, which has over 1.6 million users throughout the world and 35,000 in New York, had applied for the permit in August 2015 and it was operating under a “safe harbor” provision that allows BitLicense registrants to do so. The exchange is now going to have to stop servicing the state’s residents within 60 days
Despite BitLicese being a controversial regulatory framework, various companies have been granted authorization to operate in New York. Some of these are Cottonwood Vending and LibertyX, Robinhood, Bitstamp, Xapo and bitcoin ATM operators.