We have previously written about New York’s BitLicense regulations, which prohibit companies from engaging in “virtual currency business activity” in New York, or with New York residents, without a license. Bittrex, based in the State of Washington, is one of the more established cryptocurrency exchanges. On April 10, 2019, the New York State Department of Financial Services (“DFS”) published a letter denying Bittrex’s BitLicense application. According to the DFS press release, the application was denied primarily…
In June 2015 New York leapt forward and introduced the BitLicense. The BitLicense regulations prohibit companies from engaging in “virtual currency business activity” in New York, or with New York residents, without a license. The idea is that the state will act as a gatekeeper for what is seen as high-risk business activity to ensure that companies dealing in virtual currency are structurally sound and have in place adequate protective measures, such as capital requirements…