Coinbase suspends Bitcoin services in Wyoming due to banking regulation

Regulation | June 8, 2015 By:

On Tuesday, June 2, Coinbase announced the suspension of its services in the state of Wyoming due to banking regulatory policies that are likely to “render continued operations impractical.”

“We understand that the Wyoming Division of Banking interprets the Wyoming Money Transmitter Act to require licensure of entities which offer hosted Bitcoin wallet services, and that as a condition of such licensure, licensees must maintain dedicated fiat currency reserves in amount equal to the aggregate face value of all Bitcoin held on behalf of customers,” said Coinbase.

Coinbase added that the suspension will be an inconvenience to their Wyoming customers and apologizes that they cannot currently project if or when their services may be restored.

Coinbase is a bitcoin wallet and platform where merchants and consumers can transact with the new digital currency bitcoin.