Bitfinex exits Washington State due to license problems

Announcements | March 1, 2017 By:

Bitcoin exchange Bitfinex announced it will no longer be doing business with clients in Washington State following a regulatory debacle with the Division of Financial Institutions.

In a notification reproduced on Reddit by a Washington resident user, the exchange said that it would need to acquire a state money transmitter license in order to continue serving clients.

“At this time, we are not obtaining a money transmitter license in Washington and, accordingly, we will no longer be doing business with verified Washington customers, effective immediately,” said Bitfinex.

The patchwork nature of state-by-state regulatory requirements in the US have been a constant problem from cryptocurrency businesses. Across the continent in New York, the BItlicense scheme famously resulted in a mass exodus of startups previously resident in the state, along with blocking of users by those based elsewhere.