The New York Office of Monetary Services rejected Seattle-centered crypto trade Bittrex’s application for a BitLicense Wednesday.
In a letter printed by NYDFS, the NY regulator points out that a number of factors contributed to the rejection.
“Throughout Bittrex’s application procedure, the Office labored steadily with Bittrex to deal with continued deficiencies and to aid Bittrex in creating ideal controls and compliance systems commensurate with the evolving character of the sector,” wrote Daniel Sangeap, deputy superintendent and deputy counsel at NYDFS.
The regulator apparently “issued several deficiency letters” because the trade first submitted an application, addressing Bittrex’s anti-income laundering processes, Office environment of International Belongings Regulate compliance and its coin listing procedure.
Even so, a number of fears remained unaddressed, Sangeap wrote.
The letter goes into detail, stating that “Bittrex’s current policies and processes are either non-existent or inadequate,” questioning the “level of authority and performance of the Compliance Officer,” stating it may possibly have an inadequate schooling system for employees and a number of other troubles.
Bittrex has 14 days to validate to NYDFS that the trade has ceased conducting company in New York and build a plan to wind down any present company with condition inhabitants.
The trade will have 60 days in total to transfer any assets it custodies for New York inhabitants and transfer any positions or transactions.
This is a creating story. CoinDesk will carry on to keep track of and update.
Picture of Kiran Raj, Main Tactic Officer at Bittrex, via CoinDesk archives