The New York Department of Financial Services said on Wednesday it has rejected the application of Bittrex, a US-based digital asset exchange, for a virtual currency license that it needs to operate in the state. In a statement, DFS said it denied Bittrex's application due to deficiencies in the exchange's capital, as well as anti-money laundering, requirements. It cited its "failure to demonstrate that it will conduct its business honestly, fairly, equitably, carefully, and efficiently."
The New York regulator also ordered Bittrex to cease operating in the state of New York and wind down its business within 60 days.
Bittrex did not immediately responded to Reuters' request for a comment.
The cryptocurrency exchange has been able to operate in New York under the terms of a "safe harbor", which is permitted by the DFS while its application for a virtual currency license is pending. The Seattle-based exchange applied for a license in July 2018.