Coinsetter submits BitLicense application

(Corrected second paragraph saying that Coinsetter failed to submit BitLicense application on time.)

The August 8 deadline for New York's bitcoin companies to apply for BitLicense saw many start-ups ceasing their services, while some established firms submitting their applications.

Coinsetter, a New York-based bitcoin exchange, is one of the companies that submitted its application before the deadline of the 45-day grace period which elapsed last week after the BitLicense framework was officially revealed.

With Coinsetter submitting its application to the New York Department of Financial Services (NYDFS), it is now legally authorized to offer its services to New York customers during its review process. BitLicense not only requires companies to share detailed information about their own operation, but also steps have been taken to prevent money laundering including Know Your Customer (KYC) requirements. 

"It sends a message that we wanted to send to our customers," said Jaron Lukasiewicz, founder and CEO of Coinsetter, a Wall Street bitcoin exchange. "We've never really been that appealing to anonymous interests anyway."

While Coinsetter and others opted to pay the $5000 fee, many found the cost wasn't worth the potential benefits.

"While we're sure that the protection from New York law enforcement is valuable, it comes at a price that exceeds the market opportunity of servicing New York residents," wrote the founders of Kraken, a San Francisco-based bitcoin exchange. "Therefore, we have no option but to withdraw our service from the state."