Joseph Young

Joseph Young

Joseph is a web developer and designer, writer and a passionate musician who loves to travel. He has worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines.

August 10, 2015
Op Ed

Kraken Joins Exchanges Refusing to Apply for a BitLicense, Suspends Service in New York

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  3. Kraken Joins Exchanges Refusing to Apply for a BitLicense, Suspends Service in New York
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San Francisco-based bitcoin exchange Kraken has announced the dismissal of its service in New York due to the state’s BitLicense and strict regulations for financial exchanges.

“Regrettably, the abominable BitLicense has awakened. It is a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth. It’s at least a 40-man, bro,” the Kraken team wrote on their blog.

According to the Kraken team, some of the reasons for their decision include no user-support from New York banks, no guarantee of enforcement against unlicensed competitors and reduced customer protection for all New York-based users and traders.

Kraken is the third company to leave New York over the last two weeks, following the lead of bitcoin exchange BitFinex, boutique bitcoin exchange Poloniex and bitcoin peer-to-peer marketplace Paxful.

Kraken explained to the users that the company may resume its services in New York in the future if the New York Department of Financial Services decide to reduce the requirements of the BitLicense and reduces the compliance, application and legal costs involved.

“If the BitLicense becomes significantly nerfed at some point in the future, we may attempt a rescue. Until then, you’re on your own. Good luck,” The Kraken team announced.