In line with an official ‘press-release‘ published, U.S. based renowned crypto-currency exchange namely ‘Bittrex’ has recently responded to the NYDFS [New York Department of Financial Services] ‘denial‘ of the firm’s BitLicense application.
Just earlier today, NYDFS ‘denied‘ Bittrex’s application for a BitLicense – that is needed to conduct virtual currency concerned business within the state of New York – claiming that the ‘exchange‘ had inadequate policies and controls relating to AML [Anti-Money Laundering], KYC [Know Your Customer] as well as the OFAC [Office of Foreign Assets Control] standards.
Within its response, Bittrex expressed its disappointment in the NYDFS’ call and argued that the regulation “harms instead of protecting the New York customers.” The exchange additionally explained its disagreement with NYDFS’ claims associated with its AML and compliance practices.
Bittrex added that it “maintains a risk assessment framework, approved by outside counsel, and completely trains all company workers in its AML policies & procedures.” The exchange additionally expressed that it ‘screens for SDNs [Specially Designated Nationals] after a client opens an account, and tracks all SDN updates from OFAC, checking our client’s upon notice…’
Additionally, Bittrex expressed that NYDFS set-up capitalization needs that exceeded those of any another state. Those needs were seemingly based mostly upon a pre-existing formula of hot wallet storage vs the cold wallet storage, not taking into the considerations of the range of coins listed by Bittrex and ignoring the risks of frequently transferring assets from hot to cold storage.
Bittrex claimed within the release that it offered a bond to cover the total capitalization of all the New York purchasers, but however that was rejected. The exchange additionally added that the letter from NYDFS contained many factual inaccuracies in reference to the implementation of transactional observation, risk assessment framework, and checking customers, among others.
Presently, Bittrex is positioned at the ‘54th rank‘ on CoinMarketCap’s list of exchanges in terms of adjusted daily transactional volumes. However at the reporting time, the exchange’s 24-hour trading volume is about $63.5 Mln, having gained nearly around 6% over the past twenty four hours.