The US-based Bittrex cryptocurrency exchange got its BitLicense application rejected by the New York Department of Financial Services on April 10th, 2019.
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….
The deputy counsel of NYDFS, Daniel Sangeap, commented that the Department actually worked closely with the exchange during the process, especially to guide Bittrex on the potential compliance systems.
And despite the help from NYDFS, Bittrex still did not clear problems related to its coin listing process, anti-money laundering process and certain compliance measures.
In addition to the abovementioned issues, another one was due diligence on customers. As reported by Coindesk, some of the accounts were identified by “clearly false names” such as “Elvis Presley,” “Donald Duck,” “Give me my money” and “abc-abc,” etc.
Now, after the rejection letter is out, Bittrex has two weeks to confirm to the regulatory agency that the exchange is no longer doing business in New York. In addition, the exchange should be “withdrawing” any existing business lines in New York. Bittrex is expected to come up with a plan to cease its operations in the state. However, Bittrex is eligible to reapply for the BitLicense.