The New York Department of Financial Services rejected yesterday Bittrex's application to obtain a BitLicense license.
The regulator has published a letter in which it explains the reasons behind this decision. This is the first time in two years that the NYDFS rejects an application for its BitLicense license, which companies related to virtual currencies need to operate in the state of New York.
Daniel Sangeap, deputy superintendent and deputy counsel at NYDFS, says:
"Throughout Bittrex's application process, the Department worked steadily with Bittrex to address continued deficiencies and to assist Bittrex in developing appropriate controls and compliance programs commensurate with the evolving nature of the sector."
Since the crypto exchange submitted its request, the regulator has sent it a series of letters reporting several deficiencies identified in the trading platform, such as problems with its anti-money laundering and asset listing procedures.
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