Friday, April 19, 2019

New York Watchdog Denies Bittrex’ Request To Receive BitLicense

Another cryptocurrency exchange company that wishes to enter New York’s financial market might be forced to enter a different path– away from the Big Apple.

Bittrex Got Denied

According to the latest announcement of New York State Department of Financial Services (NYDFS), one of the most popular US-based crypto exchange Bittrex, had unfortunately failed on submitting to the qualifications needed to acquire the ever-controversial BitLicense.

As explained by the agency on April 10, although the crypto exchange company was able to operate in the country for the past years due to their granted license under the ‘safe harbor’ category. Bittrex, somehow, did not met NYDFS’ other requirements to be fully granted with BitLicense.

Failure To Fulfill Qualifications

As enumerated, the company fails to comply with an adequate internal policies and compliance programs, lack of adequate due diligence in launching tokens or products, inadequate capital, and denial of applications and cease and desist order. Aside from these, Bittrex was also shown to be unable to provide policies in regards to Anti-Money Laundering (AML), Know Your Customer (KYC), and Office of Foreign Assets Control (OFAC) standards– which mainly the New York watchdogs are keen about.

With these, NYDFS firmly decided to not accept Bittrex as part of the New York’s financial group.

“Based on the Department’s extensive review of the information submitted and the Department’s recent review of Bittrex’s operations, the Department hereby denies the applications due to the applicant’s failure to demonstrate that it will conduct its business honestly, fairly, equitably, carefully, and efficiently.”

On the other hand, Bittrex– that got denied on their application– immediately reacts to NYDFS’ statement regarding their policies. As stated:

“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.”

Although Bittrex answered all the negative claims of NYDFS about their company, the agency is still firm on their decision to withdraw the request of the crypto exchange.

On April 11, 2019, the Seattle-based exchange are expected to close all their businesses in the country. In order to assure Bittrex’ compliance, the company is also demanded to submit letter addressed to NYDFs within 14 days, as a proof of their closed transactions in New York.

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