The development is the latest in the ongoing debate over the BitLicense, New Yorks state-specific regulation for Bitcoin businesses, which continues to be a lightning rod for criticism from both within the Bitcoin community and more widely among mainstream technology advocacy groups. State regulators had previously set 8th August 2015 as the submission deadline for business already serving consumers in the third-largest US state by population.
So far, exchanges including New York-based Gemini and itBit as well as Bitstamp have applied for a BitLicense. Smaller businesses including merchant processor GoCoin and altcoin exchange Poloniex, however, recently revelead they would not continue efforts to reach customers in the state.
Based in the US, Kraken and its executives have long had a contentious relationship with US regulators, withdrawing services from the domestic market in early 2014. Hong Kong-based exchange Bitfinex was straightforward with its announcement, quoting from the BitLicense before indicating it would be ceasing services in the state as of the deadline. Both exchanges indicated they would continue to monitor the regulatory situation in New York with the goal of re-opening services.
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