New York State Department of Financial Services (NYDFS) rejected the cryptocurrency exchange Bittrex license application required for the work in the state.
— Bittrex (@BittrexExchange) April 10, 2019
The regulator explained the decision by the lack of the exchange capital as well as non-compliance with requirements for combating money laundering.
Now, the Department gave Bittrex 60 days to ensure that the exchange suspends its activities in the New York state.
As noted, Bittrex performs inadequate verification of customers, since a large number of transactions do not contain tax identification numbers and customer names.
Department workers also found a significant number of pseudonyms, such as Elvis Presley, Donald Duck, and Give me my money.
In general, the Department found that the AML program is not perfect, given the fact that its client base is about 1.67 million users, including 35,000 users from New York, and the operator offers 212 cryptocurrencies and processes more than 100 million transactions annually.
Previously, the cryptocurrency exchange worked on a “safe haven” conditions in the state, that is, when applying for a license, companies can operate until the results are obtained.
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