The cryptocurrency exchange Bitfinex has suspended activities in the US state of Washington due to tightening of regulations.
Bitfinex customers registered as residents of Washington received a message from the exchange last week advising to withdraw funds from their accounts due to the suspension of service throughout the state.
The letter says that over the past few months Bitfinex has been in negotiations with the Washington State Department of Financial Institutions (DFI) concerning the legal status of the exchange’s business and activities.
“DFI representatives take the view that we may not offer our platform services to Washington state residents without obtaining a state money transmitter license in their state,” the announcement reads.
Some Reddit users claim the message was circulated only one day before the withdrawal due date on 1 March 2017, and a number of customers were not able to withdraw funds.
Earlier, Bitfinex stopped providing services to residents of New York citing the same reason. The state of New York demands cryptocurrency businesses to obtain a special license for their activities known as BitLicense.
Many US jurisdictions have recently tightened the rules concerning operations with cryptocurrencies. Last week, Coinbase announced the closure of its business in Hawaii after the demand from the local authorities to constantly hold cash reserves equal to customers’ digital currency-denominated funds. The crypto exchange considers this policy “untenable”, therefore, it has advised its customers resident in Hawaii to withdraw their funds and close accounts within the next 30 days.
Image via Flickr