Washington [state] regulators recently introduced exchange rules for any firm wanting to allow customers to trade in cryptocurrency. They said they created Senate Bill 5031 to make the ecosystem fair for cryptocurrency exchanges and their customers. However, a number of exchanges have left the area, because they believe the rules were too burdensome. Now Washington lawmakers are defending the bill on the grounds that it helps the exchanges and their clientele.
Poloniex, Bitstamp, Kraken, and Bitfinex are a few of the exchanges that left the area after Washington announced its regulatory requirements in July. Each company provided their reasoning why they stopped servicing Washington area customers.
Bitstamp wrote a letter to its customers back in 2016, saying, “After long and careful deliberation, we are sorry to inform you that due to recent regulatory constraints imposed by the State of Washington, Bitstamp will cease to serve customers from The Evergreen State, effective 20th December 2016.”
Bureaucrats Claim Bill is Good
Charlie Clark, deputy director of the state’s Department of Financial Institutions and director of the authority’s division of consumer services, did not comment on the specific companies that left. He did suggest the restraints were not imposing or negative, though. He mentioned State financial regulators spent months preparing and detailing the bills.