The New York Department of Financial Services may be more open to offering a Bitlicense these days however as Bittrex found out on Wednesday not everybody is being awarded. On Tuesday Bitstamp became the 19th platform to receive the virtual currency license and the fifth this year. Unlike the past when the agency delayed its decisions on the matter, this year they seem to be picking up the pace according to Nejc Kodric the CEO of Bitstamp.
However, it doesn’t mean every applicant will be awarded a license to trade virtual currencies at least in the state of New York as Seattle-based crypto exchange Bittrex found out yesterday. A letter published by the regulator explains why the agency rejected the platform’s application on Wednesday, the first rejection over the past two years.
Daniel Sangeap who is the deputy superintendent and the deputy counsel at NYDFS noted:
“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.”
He went on to add that the agency issued many deficiency letters to the platform since the first time it applied for a Bitlicense that addressed on their anti-money laundering procedures, coin listing processes and its Foreign Assets Control compliance.
According to Sangeap, many of the concerns have not been addressed. The letter also goes go on to say that the platform’s current policies and procedures are either non-existent or inadequate. Also, it questions the level of authority and the effectiveness of the exchange’s compliance officer.
However, in a statement, the exchange disputed the findings of the regulator and said that it had started addressing any concerns it may have.
What’s your take on the NYDFS denying Bittrex a Bitlicense? Share your thoughts in the comment section below.