Announcing its decision to shut its US operations, the Toronto-based Bitcoin exchange Vault of Satoshi, said that it feels that the regulator environment in the US is becoming increasingly hostile toward Bitcoin. The announcement came via its Facebook account on 6th March where the company posted that it won’t operate in the US effective immediately.
After the failure of Mt. Gox, it looks like the governments are concerned about the affairs and some of them are putting a lot of regulator measures to discourage Bitcoin and other digital currencies. Now, Vault of Satoshi says that there is higher cost of compliance in the US where in addition to the lack of clarity from major regulatory bodies, there are several roadblocks.
In its statement Vault of Satoshi said that the state-by-state requirements for operating an exchange in the US were the biggest roadblocks wherein setup and compliance costs for this process are astronomical. Several other Bitcoin companies have been complaining about the issue in the past and asking for greater flexibility on the part of regulatory bodies.
Though the operations are being shut by Vault of Satoshi, the company is not willing to shut the door to its US business permanently. The statement also said that now the company will be exploring re-launching on a state-by-state basis. However, there is no timeline for such an action and everything has been left open.
Company Apologizes to Its Customers
Talking about its customers and what is up for them the next, Vault of Satoshi said that services would change for current US-based customers as now they would only be able to conduct coin-to-coin trading. However, such a service that is not yet launched on the site but that will debut in the coming weeks.
Now, the customers in the USA that were in the process of being verified won’t be able to complete this process. The organization in its statement said that it did issue a timeline for when customers could expect refunds to be given. The communication reads that any dollars currently in customers’ account will be refunded to them via check, which they should receive within 2-3 weeks.
Apologizing to its customers, Vault of Satoshi said that it is though a major setback, it is being carried out in the best interest of its business. The company said that it is deeply regretting that it can no longer service customers’ cryptocurrency exchange needs, and we’ll do everything it can to re-gain their business and re-launch in their country in the near future.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org