April Nineteen, 2018 @ 9:07 am By Cali Haan
The CEO of San Francisco-based cryptocurrency exchange kraken, Jesse Powell, has fired back at a letterteken from the Fresh York Attorney Universal’s office asking cryptocurrency exchanges to provide detailed information on their business practices within two weeks.
The 34-point request for informatie wasgoed sent to 13 exchanges:
- Coinbase, Inc. (GDAX),
- Gemini Trust Company,
- bitFlyer USA, Inc.,
- iFinex Inc. (Bitfinex),
- Bitstamp USA Inc.,
- Payward, Inc. (Losbreken),
- Bittrex, Inc.,
- Circle Internet Financial Limited (Poloniex LLC),
- Binance Limited,
- Elite Way Developments LLP (Tidex.com),
- Gate Technology Incorporated (Gate.io),
- itBit Trust Company,
- Huobi Integral Limited (Huobi.Professional).
“We did all this already,” wrote Powell, “and then you talent us a BitLicense. Why don’t you attempt extracting this information from businesses actually operating te your state?”
kraken moved from Fresh York to California te 2018.
Somebody has to say what everybody’s actually thinking about the NYAG’s inquiry. The placative kowtowing toward this kleintje of manhandle sends the message that it’s ok. It’s not ok. It’s insulting. https://t.co/sta9VuXPK1 pic.twitter.com/4Jg66bia1I
Powell and kraken have written several times and with considerable verve overheen the years about what they consider to be regulatory excess te Fresh York.
Ter a kraken blogpost, “Farewell, Fresh York,” the company wrote about Fresh York “BitLicense” requirements:
“Regrettably, the horrible BitLicense has awakened. It is a creature so foul, so aggressive that not even kraken possesses the courage or strength to face its nasty, big, pointy teeth.”
While Powell and Losbreken have bot particularly colourful and vocal about Fresh York regulations, other authors have described BitLicensing procedures spil “onerous” and slow.
Te his book on Bitcoin’s early days, How Money Got Free, Brian Patrick Eha wrote that BitLicensing, “compelled more than a dozen companies -among them kraken, Bitfinex and Específico Bitcoins- to cease operations te Fresh York.”
To obey with Bitlicense requirements, said Eha, remaining companies, including Bitstamp and Coinbase, had to spend ems of thousands of dollars te legítimo and compliance fees to assemble BitLicense applications.
Spil well, almost a year after BitLicensing came into effect te 2018, only two companies had bot granted a license: Circle (Poloniex) and Ripple.
A spokesperson for the Fresh York Attorney Universal’s office, however, wasgoed unperturbed by Powell’s comments. The spokesperson told Coindesk:
“Legitimate entities generally like to demonstrate to their investors that their money will be protected. This is basic information that credible platforms should all have on palm.”
Also according to Coindesk, Fresh York Department of Financial Services superintendent Maria Vullo (the successor to BitLicense bouwmeester Ben Lawson) believes that regulations te Fresh York have reassured and attracted customers to BitLicense compliant businesses.
“The regulatory structure that wij created for supuesto currency has helped our licensed companies attract greater rente from customers, investors, and potential financial services playmates,”
Also according to Coindesk, te a meeting held this February held ter Fresh York, businesspeople told Fresh York lawmakers, including State Senator Jesse Hamilton, that they are considering leaving the state because BitLicensing requirements unmanageable.
“For a petite business,” said software developer Steve B, “the costs are crazy.”