Crypto exchange Bittrex said that New York regulators failed in recognizing two of its clients as North Korean.
As per Bittrex, there are no North Korean users on its platform. In an announcement issued on Monday, Bittrex said it had examined two accounts that were flagged as pertaining to residents of the authorized nation by the New York Department of Financial Services (NYDFS), which as of late rejected the application of the exchange for a BitLicense.
Other than denying the exchange a permit, Bittrex additionally needed to stop its businesses in the Big Apple.
According to an announcement from the cryptocurrency exchange, South Korean users had chosen the rogue state mistakenly as their nation:
“After reviewing the two alleged accounts provided to us on Thursday, we informed NYDFS that Bittrex had previously investigated these users in Oct. 2017. South Korean residents mistakenly selected North Korea in our country dropdown menu, but we determined through country identification, physical and IP addresses that ALL were from South Korea.”
Executive deputy superintendent for banking Shirin Emami had remarked that it was only a little sample and more are possible to exist.
NYDFS stated that Bittrex neglected to prove its capability to lead the business reliably, equitably, cautiously and proficiently. The NYDFS proceeded to refer to a few other inadequacies as well that existed in Bittrex’s business standards. This incorporated the inability to practice due diligence and control with respect to the exchange’s product and token launches. Bittrex likewise had lacked in gathering New York’s capital prerequisites.