Poloniex Quits Washington State As New Exchange Rules Become Active

Bill Requirements for Bitcoin Exchange

The rules declare that anyone who operates a cryptocurrency exchange within Washington must apply for a license from the State. They must also contract with a third party auditor and have their system disrobed and inspected.
The bill states, “For business models that store virtual currency on behalf of others, the applicant must provide a third-party security audit of all electronic information and data systems acceptable to the director.”

Lawmakers also created a rule that says exchanges have to have a bond associated with their business. The figure of the bond has to be tied to the amount of currency transacted in the previous year.
Reaction From Popular Exchanges
As a result of the new law, major exchanges
Poloniex and Bitfinex said they would cease conducting business in the state. The new regulations do not seem to jibe with their goals and ability to serve the customer. However, the exchange Gemini has already been granted approval and a license to begin allowing Washington-based clients to buy and sell on their exchange.

What do you think about Washington’s new regulations? Do you think these are good for bitcoin and cryptocurrency exchanges? Let us know in the comments below.

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