NYDFS denies Bittrex's application for a BitLicense

10 Apr, 2019
by David Borman
Exchange
NYDFS denies Bittrex's application for a BitLicense

It has been reported by Cointelegraph that the New York Department of Financial Services (NYDFS) has officially denied the application for a BitLicense that Bittrex submitted. This means the exchange will have to halt operations in New York state, effective tomorrow.

Bittrex originally applied for a BitLicense back in August of 2015, and has been operating in New York under the “safe harbor” terms that are allowed while an application is in review.

Now, NYDFS has sent Bittrex a letter in which they outline the reasoning for their declination. The main issues that the regulatory body has with Bittrex include a general lack of adequate Anti-Money Laundering (AML) policies, insufficient training of employees, and lacking proof of capital. 

Apparently, the NYDFS has been sending letters to Bittrex, attempting to get in touch "to address continued deficiencies and to assist Bittrex in developing appropriate controls and compliance programs commensurate with the evolving nature of the sector."

Now, Bittrex has until tomorrow to cease operations in New York State, and must provide proof of having done so within 14 days. The company has released a response to the decision, in which they address most of the reasons for their denial. In general, they feel the decision was based upon a combination of outdated information about the company, or too strict policies and requirements.

It is unclear if the company will ever seek to re-apply, but the response does say:

"Bittrex will continue to mature its compliance program because we believe in being good corporate citizens, and because we believe in the rule of law. We will continue to work with the many other regulators, and we will continue to take constructive feedback to improve our ability to be the corporate citizens we have set out and committed to be."

Read more: Veriblock (VBK) trading goes live after successful Bittrex IEO

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Read more about: Bittrex New York

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