ShapeShift digital currency trading platform will leave New York to protest Bitlicense

ShapeShift digital currency trading platform will leave New York to protest Bitlicense

ShapeShift digital currency trading platform will suspend its service in New York, the reason is that it can not agree New York Bitlicense for bitcoin regulation.

The new law requires a digital currency company must record the user’s personal identification information. ShapeShift says it cannot comply with the provisions of.

ShapeShift CEO Eric (Erik Voorhees) said Wallis?:

“We are either against their will compromise, or simply to leave New York, and we will choose to leave New York, because this is a moral choice.”

Bitlicense is by Benjamin? Routh (New York’s Department of financial services Benjamin Lawsky the outgoing head of the drafting office). BitLicense is designed to protect the interests of consumers of digital currency. Therefore it provides digital currency companies must comply with the “know your customer” according to this criterion, the authorities said it was in order to prevent fraud, money laundering and the financing of terrorism.

But in view of these regulations and Wallis, can not protect the safety of customer funds, because so far, those strong companies and governments are unable to protect data from hackers.

Wallis said: “we are not going to watch people’s privacy is purely to make their work easier.”

According to a spokesman for the New York Financial Services Department said, New York Financial Services Department will consider this response ShapeShift.

Wallis said in a statement to CNBC: “we always think that there are opposing regulatory measures of financial standards of the community (such as anti money laundering control and other consumer protection measures) some people or organizations. That is to say, a digital currency companies from New York Financial Services Department received a license, and some other companies have said they are looking for Bitlicenses.”

The spokesman of New York’s financial services sector added: “we believe that the prudential supervision of the final Bitlicense will help people to set up the digital currency greater consumer confidence, so that the said digital currency be more widely adopted.”

Wallis said that if the government is to collect information from the ShapeShift through the proper channels, so he is willing to offer the wallet address, IP records and user access is the platform through which equipment, but the company does not provide a user name and address.

ShapeShift was transferred to PleaseProtectConsumers.org service in New York will. This decision is expected to Wallis will sacrifice the trading volume on the platform of ShapeShift 1%.

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