by Alexander Romero 
Bittrex failed to get a Bitlicense in the United States!
The Financial Services Department of New York (NYDFS) has postponed this Wednesday the application of Bittrex to get a BitLicense.
In a letter published by the NYDFS, the New York regulator explained the factors that contributed to this rejection, besides the first they presented two years ago.
In this regard, Daniel Sangeap, director and a deputy advisor to the regulator, made a statement:
“Through the Bittrex application process, the Department has been working across the board with the platform to address ongoing problems and to help them develop appropriate controls and fulfillment programs for the natural evolution of the sector.”
Apparently, the regulator has issued a few letters pointing out Bittrex’s defects since they originally filed an application, specifically devoted to its anti-money laundering procedures and its currency inclusion process. However, they did not fix some of the issues highlighted by the NYDFS.
The letter goes on to detail that the current processes and policies at Bittrex are inadequate or non-existent, by challenging the “level of authority and actuality of compliance with regulations” and ensuring that its training program for its staff is inadequate, among other problems.
Similarly, they state that, during the user registration process, they could not identify poorly written names because of a manual verification process instead of an automated procedure.
There is also the fact that Bittrex operates in countries sanctioned by North American regulators.
According to the letter, in the platform, there are clearly fake accounts, with names like Elvis Presley, Donald Duck, Give me my money, abc-ab, in addition to “obscene terms and phrases”.
In an announcement, Bittrex assured that it has already begun to settle many of the regulator’s complaints.
In addition, they reiterated that the platform has already instituted various policies to have much more rigid identity verification processes.
However, it seems that this decision has clearly surprised Bittrex who does not obtain a Bitlicense while Bitstamp has just obtained one.
https://bitcoincryptoadvice.com/bitstamp-gets-a-bitlicense-to-expand-in-the-united-states
What is striking is that Bittrex is an American company and that it did not follow the recommendations of its own local regulator while Bitstamp, an English company located in London, was able to comply with the recommendations of the regulator of New York to get a Bitlicense.
This is bad news for Bittrex, the competition like Bitstamp is moving forward at a time when the cryptos market is starting to go back up and a next bull market is in sight for the crypto exchanges that will have to be ready when the buyers will rush in to buy Bitcoin or other cryptocurrency!
And if Bittrex can not accept some American consumers, it’s bad because users will go elsewhere like at Coinbase or Bitstamp precisely.
