ShapeShift Ends Service in New York, Cites "Anti-competitive" Bitlicense

Cryptocurrency brokerage ShapeShift has confirmed that it will stop servicing customers in New York, blaming the recently finalized BitLicense regulations.

The regulations were spearheaded by New York Department of Financial Services (NYDFS) superintendent Benjamin Lawsky. They would require any business transmitting digital currency to obtain specialized licensing if marketing to customers in the state. ShapeShift says the rules are "anti-competitive" and target "a wide swath of digital currency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term-based financial firms, violates consumer protections and puts users at risk."

The company cites the fact that such businesses would be forced to collect confidential user data, which can be stolen if their systems are compromised. ShapeShift CEO and Bitcoin entrepreneur Erik Voorhees, a vocal critic of Lawsky, the BitLicense, and Bitcoin Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term in general, said:

"Identity theft is an epidemic, more costly to society than many other forms of theft and crime. It is pervasive because the antiquated financial system–based on credit cards and banks–only works when personal information is attached to your transaction. Bitcoin has finally solved this problem, by enabling 100% secure transactions without attaching your private information. Now, New York wants to mandate that consumers continue to be put at risk, even though technology has provided a solution to identity theft."

On the decision to end service to New York, he commented:

"Since New York has mandated unethical and dangerous data collection of users, we have no choice but to suspend service to that territory. We hope other jurisdictions will be less reckless with the private information of their residents. Finally digital commerce can be safe, if only regulators would let it happen."

Users visiting the site from New York will be redirected to another site, PleaseProtectConsumers.org.