Poloniex Blocks Bitcoin Trading Services In New York Following Controversial Bit License Requirement




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Poloniex a very popular U.S. based cryptocurrency trading exchange platform will block New York residents from services beginning August 8th 2015. Users of the site have been issued an email warning letting them know they must remove funds if they reside in NY.

“In accordance with the New York State Department of Financial Services, Poloniex will no longer be allowed to provide services to residents of the State of New York starting on August 8th, 2015. If you are a resident of New York, please take appropriate measures to withdraw your funds by 11:59pm Eastern Daylight Time on August 7th, 2015. For more information or for further assistance, please contact our support staff by going to poloniex.freshdesk.com.”
— Poloniex Bitcoin Exchange

On the 24 of June the BitLicense was adopted by New York legislation and is now recognized by The New York State Department of Financial Services (NYDFS).

Bitcoin and virtual currency businesses must apply for a license within 45 days from its initial announcement of which August 8th is the deadline for all virtual currency operations to comply.

“Any person engaged in virtual currency business activity that fails to submit an application for a license within 45 days of the effective date of this regulation shall be deemed to be conducting unlicensed virtual currency business activity.”
— BitLicense Transcript

Recently, Shapeshift another very popular cryptocurrency exchange based in Switzerland also blocked services in the State of New York in protest of the BitLicense.

Founder Erik Voorhees believes the license is unethical, and exposes personal user information creating Please Protect Consumers in protest against mass data collection and sharing of personal user information. ShapeShift was praised by many in the Bitcoin community for it’s stance against state regulation and data collection.

Andreas Antonopoulos tweeted to fans after this announcement and his perception of what Shapeshift accomplished:

“Kudos to ShapeShift for refusing to become a honeypot of PII just to satisfy NY regulators.”
— Andreas Antonopoulos

Data collection is believed by the community to be unethical after revelations recently revealed by Edward Snowden about the illegal surveilance of millions of America citizens by the NSA.

More companies are expected to follow Shapeshift and Poloniex in protest of unethical as well as unconstitutional and unreasonable regulation. Let this message speak loud and clear to other states such as California that these types of unwarranted regulations will only stifle innovation and most likely block your state from participating in the development of an amazing and phenomenal technology.

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