Kraken and Bitfinex halt Services in New York

San Francisco-based Kraken and Hong Kong-based exchange Bitfinex, have recently indicated that they will not apply for licenses to function in New York.

Big names in the cryptocurrency ecosystem including New York-based Gemini, itBit and Bitstamp have already sent their applications for a BitLicense. However, smaller businesses including GoCoin and Poloniex have said that they would discontinue all efforts to reach customers in the region.

Kraken and its executives have had a long controversial relationship with US regulators, and it withdrew services from the domestic market last year and stopped all US dollar services within a few months.

"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. Therefore, we have no option but to withdraw our service from the state", the exchange said in a note.

Bitfinex made a more clear-cut statement, quoting from the BitLicense before suggesting that it would be suspending its operations in the state as of the 8th August deadline.

Both the exchanges, however, said that they would continue to keep an eye on the regulatory situation in New York with the objective of resuming services soon.