As draconian Bitcoin regulation law BitLicense deadline this week neared, a number of prominent Bitcoin companies ceased operations in New York. The latest name in the list is Genesis Mining which according to reports has shown its concern over the stringent clauses in BitLicense. The company has also cited that cost is another reason it won’t stay in NY.
Cost indeed is a major reason that small Bitcoin companies cannot sustain in New York as of those who did apply and fronted the $5,000 non-refundable application fee. These companies most also have to go through an arduous process and high costs. Thus, BitLicense is truly killing the small Bitcoin companies that have lower affordability.
Writing about the decision to depart from New York in a blog the company says that Genesis Mining will not be able to comply with the regulations set forth by the proposed BitLicense and as such, it will no longer be able to accept customers from the state of New York. The cloud mining firm has over 50,000 customers.
However, now it appears that the company has no choice but to block anyone with a New York IP address from using its services. In the blog the company says that though all current customers will be able to continue their services, but going forward, no one with an IP address from the state of New York will be able to purchase hashpower contracts with us.
Nonetheless, Genesis Mining also questions the objective of BitLicense as it says:
While advocates for the BitLicense say they want to protect consumers, what the act really does is stifle innovation. It’s complex, expensive, and comes with a set of guidelines that make it nearly impossible for any startup to comply with.
Exodus of Bitcoin Companies Continues as BitLicense imposed in New York
Genesis Mining is not the first company to leave New York or block the customers from the state but several other companies too have decided the same. A major reason behind such a decision is that applying for the BitLicense is an expensive and difficult process. Some other firms have chosen to abandon the New York market entirely, rather than comply.
Following its 8th August registration deadline, 10 Bitcoin companies have announced their departure from New York. Some leading name in the list of the companies is Kraken, GoCoin and peer-to-peer marketplace LocalBitcoins.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org