Refutes BitLicense, Halts Services in New York Area -
3 Refutes BitLicense, Halts Services in New York Area


The Bitcoin regulation in New York will be affecting many digital currency companies for quite some time to come. And by the looks of it, one company is already halting all of their services in the state of New York, as a protest against the BitLicense regulation. ShapeShift feels the time has come to take a stand against this “immoral and unethical” regulation of Bitcoin.

Also read: New York’s BitLicense Faces Competition From Rand Paul Event – No Longer Available In New YorkShapeshiftbitcoinist

When the final version of New York’s BitLicense was revealed, many Bitcoin enthusiasts were rather unhappy with the outcome. It goes without saying this regulation could be very harmful to Bitcoin-related companies offering their services in the New York state. In fact, we may see more and more Bitcoin companies halting their operations in this state in the near future. is one of the more popular digital currency exchange services these days, as the platform allows you to trade Bitcoin and a few dozen altcoins intermittently. Because ShapeShift does not require its users to create an account, the platform is praised for its ease-of-use and respecting user privacy.

That being said, BitLicense is forcing to do things completely different from what they have been doing since day one. Recording the personal information of all customers is just one of the aspects enforced by BitLicense, a rule that chooses not to comply with. Granted, Know-Your-Customer requirements are a valuable tool in terms of combatting fraud, terrorism and money laundering, but they also expose ShapeShift customers to a potential data breach. CEO Erik Voorhees told the media that:

“We either would have to do something we’re not comfortable with or leave New York, It’s a moral and ethical stand we’re going take. We’re not going to spy on thousands of people purely to make their job a little bit easier. Disclosing customer’s IP and wallet addresses is one thing, but names and home addresses are a different matter entirely. “

New York’s Department of Financial Services expected a backlash from their BitLicense proposal. Even though is the first Bitcoin company to reject openly the regulation, several other companies have been seeking approval for a license to legally operate in the state of New York.

From this point forward, users from the New York area who try to access the website, will be redirected to

What are your thoughts on ShapeShift’s decision to shut down operations in new York? Let us know in the comments below!

Source: CNBC

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Jp Buntinx

Jp Buntinx

JP Buntinx is a freelance Bitcoin writer and Bitcoin journalist for various digital currency news outlets around the world. In other notes, Jean-Pierre is an active member of the Belgian Bitcoin Association, and occasionally attends various Bitcoin Meetups in Ghent and Brussels

  • As a resident of New York, please let Erik and the rest of the team know I fully support your decision to pull out of NY. BitLicense is a mess and stifles growth while catering to the established banking system. It also is clear it was made to be such a mess on purpose so that Lawsky could unethically start a private sector business to help people and companies navigate its edicts. Extremely unethical in my opinion and we and others have called him out on it but he ignores it as does NYS. I feel more people should speak out about Lawsky’s unethical behavior and business practice.

  • California is introducing the same thing right now. $5000 per license, plus a $2500/year renewal fee. Show’m what’s up Erik, we’re with you, ShapeShift ROCKS!

  • Nikato Muirhead

    New York is the Death Valley of financial innovation.