NYDFS Tells Bittrex Exchange to Extend Crypto Withdrawal Period; How Might This Affect You?

The crypto giant exchange Bittrex is looking to push the deadline further once more for New York customers to withdraw their funds from their respective accounts. This decision came from an approval given by NYDFS (New York Department of Financial Services).

The extension for the deadline was announced on Friday by Bittrex. This is the second time the crypto giant decided to push the period further to allow every user to withdraw all of their cash. The exchange was not given a regulatory license they had applied for to carry out its operations in New York. They, therefore, had to stop doing business in the state because they did not have any jurisdiction there.

A Stringent Regulatory Body

BitLicense is the regulatory license you should have to operate cryptocurrency operations in New York. Initially, the users of the Bittrex platform were allowed up to June 8th to draw out all the deposits they had made to the platform. Later, the DFS authorized the deadline to be pushed to October 24.

New York watchdog's did not license the exchange platform because of a few reasons that Bittrex had failed to rectify, and therefore, the company was not compliant and should not have been doing any business in New York. Among the reasons include inefficient transaction monitoring and customer relations. The firm didn't have qualified staff to run the company effectively as well.

That was according to Shirin Emami, who is the executive deputy superintendent for the NYDFS banking section, according to a CoinDesk’s article from April. Bitlicense is widely known as the strictest regulatory framework for the state and was recently revised by the watchdog itself.

According to Linda Lacewell, NYDFS superintendent on Oct. 22, the watchdog is looking to transform with the changes in the industry.

She said at DC Fintech,

“This is a good time to take a look, a responsible look and see how our regime is fitting the current market and … what if any adjustments should we think about making to continue to adapt to … a changing industry.”