Seattle based blockchain trading platform Bittrex has had its BitLicense application rejected on Wednesday April 10th. The rejection was expounded in a letter published by NYDFS where a number of reasons which have led to the rejection are mentioned.
Several Factors Behind the Bittrex BitLicense Rejection
The letter addressed to Bill Shihara, Chief Executive Officer at Bittrex, states that NYDFS had worked steadily with the firm all through the application process in order to assist Bittrex overcome several deficiencies.
However, unable to achieve much success at it, the Department denied the application on the grounds that it found Bittrex unable to ‘demonstrate that it will conduct its business honestly, fairly, equitably, carefully and efficiently’ as per the New York Banking Law.
The letter stated that the blockchain exchange firm’s policies were ‘either non-existent or inadequate,’ further stating that Bittrex’s OFAC compliance procedures did not have any solid process to remain up to date with the present OFAC list.
The effectiveness of the members of the firm was also questioned in the letter stating that employees lacked appropriate training. Also, the qualification of the compliance officer, independent testing of BSA/AML/OFAC program and customer due diligence were all deemed inadequate in the letter leading to the rejection.
The other reason that was listed in the letter for the Bittrex BitLicense being rejected was the exchange’s inadequacy in launching tokens and products. Furthermore, it was made clear that the firm had not yet made any agreement for meeting the Department’s capital requirements.
On the other hand, in a statement, Bittrex expresses its ‘sadness and disappointment’ at the BitLicence rejection, entirely disputing the findings of NYDFS, saying it was a firm that believed in the future of the blockchain technology. Bittrex now has only 14 days to confirm with NYDFS that it has stopped its business in New York.