New York Rejects Bittrex Exchange’s BitLicense Application

[MathGame]

https://www.coindesk.com/new-york-rejects-bittrex-exchanges-bitlicense-application

The New York Department of Financial Services rejected Seattle-based crypto exchange Bittrex’s application for a BitLicense Wednesday.

In a letter published by NYDFS, the NY regulator explains that a number of factors contributed to the rejection, the first such action in two years.

“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,” wrote Daniel Sangeap, deputy superintendent and deputy counsel at NYDFS.

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.

[pushups44]

New York is building itself a bad reputation in this industry for putting companies through extraordinary difficulties to meet their requirements. The only solution I can see is for New Yorkers to elect new representatives to remove or modify its cumbersome regulations.

[philipma1957]

New York is the home of the Stock Exchanges so they will toss a lot of interference at BTC and any exchanges of coins.

[denzkilim]

New York is building itself a bad reputation in this industry for putting companies through extraordinary difficulties to meet their requirements. The only solution I can see is for New Yorkers to elect new representatives to remove or modify its cumbersome regulations.

They are making it so hard because there might be some kind of interests involved in that matter and you're correct they are making a really bad image in the Crypto Currency industry but there is nothing we can do about that.

New York is the home of the Stock Exchanges so they will toss a lot of interference at BTC and any exchanges of coins.

I think that is one of the probable reasons why they had rejected Bittrex's application and it is a sad thing to hear that they are against or they are making it so hard for Crypto Currency exchange to get a license.

[anu1908]

the issue that NYDS mentioned seems existed, but in the past (around 2017). bittrex already said that they've addressed what NYDFS have found such as applying more stringent identification procedures and so on. it seems that NYDFS use what they found in 2017 to decide this, or they didn't believe that bittrex has solved that issue because there's a lack of proof (whatever you may call it).

looks like bittrex are going to leave New York and stop applying the license. bad news for bittrex.

[pushups44]

New York is the home of the Stock Exchanges so they will toss a lot of interference at BTC and any exchanges of coins.

But the NYSE and Nasdaq are now moving into the cryptocurrency space, and the owner of NYSE has stated he believes bitcoin can become a global currency. I think the issue is with regulators who have a desire to control the space.

[traderethereum]

New York is the home of the Stock Exchanges so they will toss a lot of interference at BTC and any exchanges of coins.

But the NYSE and Nasdaq are now moving into the cryptocurrency space, and the owner of NYSE has stated he believes bitcoin can become a global currency. I think the issue is with regulators who have a desire to control the space.

Yes, I heard this news too. My friend was telling me that Nasdaq is now accepting the crypto, but it's only for bitcoin, ethereum, litecoin if I am not mistaken.
I think soon, they will change their statement, and they are admitted making a mistake by rejecting bittrex. I hope that they can see that bittrex have a large customer and it's available for global exchanges.

[jademaxsuy]

New York is building itself a bad reputation in this industry for putting companies through extraordinary difficulties to meet their requirements. The only solution I can see is for New Yorkers to elect new representatives to remove or modify its cumbersome regulations.

Well it could be that way we see perspective but the government has also their own point of view especially the use of cryptocurrency. However,  the good thing is that the government still reaching out for the company to work out probably some problems that needs to be address first prior to the approval.

If this application will be approve then licensing exchanges would be trending and cryptocurrency will be soon integrated with fiat money but could not replace the fiat system.

[Ailmand]

New York is the home of the Stock Exchanges so they will toss a lot of interference at BTC and any exchanges of coins.

That could be one of the reasons why they rejected bittrex. Let's just accept that not all people who are into stock exchange will indulge on the idea of crypto taking over the whole market in the next generation.

[pfx]

This is certainly terrible news a fraction of karma Bittrex had coming.

This couldn't have happened to a better more shady exchange.

I feel genuinely terrible not at all terrible about this.

I'm sure NY's reasoning contrasts the great edit:correctly-aligns reputation found by researching Bittrex

Lesson learned here is Bittrex reaps great rewards shits where they eat then asks for seconds.

Wow sorry about all the edits guys! Just couldn't spit out this taste in my mouth!

[DaveF]

Let me start with I LIVE in NY and hate the fact that there are so many hoops to jump through for things. I hate the fact that I can’t get certain crypto services because I live here.

I love the fact that when I had a problem with a certain crypto business that has a bitlicense I made *1* phone call on a Monday morning and had the problem fixed before the weekend. This was after close to two months of emails to their “support” people and their “executives” getting involved.

So yeah it sucks, yeah I hate KYC / AML. Yeah I would like other exchanges to be here. Etc.

But in the end it’s also a bit useful.

Same also for regular banks, they fear the NYSDFS more than just about any other organization.
Here is a youtube link that just about the explains the conversation that a DFS person had with a bank that tried to not make good on a deposit bonus for someone who used to work for me.

[NSFW]
https://www.youtube.com/watch?v=Aed5_85SMb4

Yes, that is close to what they did over a “deposit $2500 and get a $100 bonus after 90 days and 15 bill payments” promo that they did not want to make good on.

The carrot is you get to do business in New York, a state that has a lot of people and a lot of businesses with a lot of money. The stick is really a club with spikes swung by Conan the Barbarian.

So, if they rejected Bittrex, they probably had a reason.

-Dave