Eobot Shuts Operations in NY thanks to BitLicense Imposition


Eobot Shuts Operations in NY thanks to BitLicense Imposition,

The company that claims to provide the easiest, cheapest, and best way to get or mine Bitcoin, Litecoin, BlackCoin, Namecoin, Dogecoin, Dash, Reddcoin, BitShares, CureCoin, StorjcoinX, Monero, Counterparty, Stellar, Bytecoin, Peercoin, NXT, and MaidSafeCoin, etc. Eobot has decided to shut operations in New York state as BitLicense is being imposed on the companies.

According to the firm the highly restrictive and controversial New York BitLicense does not allow it to function. Looks like BitLicense has now claimed another victim Eobot, BTCGuild was the first to shut the operations. The Bitcoin cloud mining company will be ceasing operations in New York State as of July 1, 2015.

The company sources claim that Eobot has made the decision to cut off its services to New York because it believes the BitLicense requirements are excessive. In the message issued to the customers, Eobot says:

To All Customers: If you are residing in and/or accessing Eobot within the State of New York, US, please withdraw all coins and cease all mining with Eobot as of July 1, 2015, as we are ceasing all Eobot mining connections from within New York at that time. We regret that we must cease Eobot business within New York State; however the new BitLicense requirements in this state place compliance and cost burdens upon Eobot that we believe are excessive.

Will BitLicense Force Other Companies Shut Operations in NY State?

Looks like Eobot is not the only victim of BitLicense as just a few days ago BTCGuild, another Bitcoin cloud mining company, announced that it would be shutting down completely because of the strict regulation. BTCGuild worried that the regulation’s “gray areas” were vague enough to bring the company under the NYDFS jurisdiction, which would put the company at risk.

However, BitLicense was not the only reason that BTCGuild shut its operations in NY; it also cited other reasons such as falling mining profitability and an increasing risk of being attacked by competitors. Nonetheless, ShapeShift, a popular cryptocurrency exchange, recently cut its services to New York as well, citing an unwillingness to comply with BitLicense.

Talking about the issues appearing up due to BitLicense Erik Voorhees, ShapeShift’s CEO and a well-respected member of the Bitcoin community, said that his company was not willing to diminish his customers’ privacy for the sake of complying with BitLicense.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com