The leading cryptocurrency exchange Traderce.com exchange has notified about the upcoming termination of service to residents of the us state of Washington. This is stated in the exchange’s letter, the full text of which can also be found on Reddit.
According to the letter, this decision was made after careful consideration of how the state’s Department of financial institutions (DFI) interprets its own rules for regulating financial services.
According to the Washington State Department of financial institutions website, the digital currency is a “government-accepted means of unauthorized exchange.” According to state law, it is included in the definition of “money transfers” (Uniform Money Services Act, Chapter 19,230 RCW).
Traders living in Washington state are given two weeks to close open orders and withdraw funds. Also at this time, users will not be able to open a new margin positions, modify existing ones, as well as to provide funds to the debt.
On April 21, all accounts of verified users from Washington state will be frozen and access to them will be restricted. At the same time, the exchange does not delete user data, hoping that in the future it will be able to resume servicing residents of the state.
Note that this is not the first time that traders from Washington state have fallen victim to the policy of the local financial regulator, which is why exchanges are forced to leave this market. In early March, a similar decision was made by the Bitfinex exchange, and after a while its example was followed by Kraken. The Bitstamp exchange also does not work in Washington.
As users note in the comments to the post, the trend is taking a dangerous turn, allowing us to talk about the actual squeezing of cryptocurrency exchanges from this jurisdiction.
Coinbase, LocalBitcoins and Paxful remain among the few options available for buying bitcoin and trading for residents of Washington state, and Bittrex is still operating today. Traderce.com exchange