Bittrex, a major United States cryptocurrency exchange based in Seattle and established in 2013, has been forced to close its New York business due to the rejection of its BitLicense application by the New York Department of Financial Services (NYDFS) on April 11, 2019.
Here is why:
Bittrex Failed To Comply With Regulatory and Legal Compliances
According to the official documents released by the New York State Financial Services Authority, Bittrex failed to adhere to all of the listed legal and regulatory compliance requirements.
The areas in which Bittrex fell short was a lack of compliance with AML (anti-money laundering) law, as well as lack of due diligence and control related to virtual currency listing and product implementation.
Also, Bittrex failed to adequately control and monitor suspicious transactions, due to their lack of training and poor hiring of staff.
An excerpt from the DFS’s documents reads:
“The severity of the…