Washington, USA officially regulates Bitcoin exchanges; P.net and B.net announce suspension of services

Back in April, Washington politicians reached a consensus and finalized regulations for Bitcoin exchanges. These regulatory guidelines and regulations are now officially in effect. Lawmakers pushed Senate Bill 5031 through the Senate and House of Representatives, and it has been officially signed by Washington State Governor Jay Inslee.

Bill requirements for Bitcoin exchanges

The regulations state that anyone operating a cryptocurrency exchange in Washington state must apply for a license from the state. They must work with a third-party auditor, disclose their systems and submit to oversight.

The bill states that "for business models that store virtual currency on behalf of others, applicants must provide a third-party security audit of all electronic information and data systems."

Lawmakers also created a rule requiring exchanges to have a margin tied to their business. The size of the margin is tied to the amount of trades they conducted in the previous year.

Response from famous exchanges

As a result of the new law, major exchanges Poloniex and Bitfinex said they would stop doing business in the state. The new regulations seemed inconsistent with their goals and ability to serve their customers. However, Gemini Exchange has received approval from the state and has begun allowing customers in the state to buy and sell Bitcoin on the exchange. Poloniex wrote:

After careful consideration of the Washington State Financial Services Commission's interpretation of financial services regulations, Poloniex will suspend account creation in Washington until further notice. For existing Washington customers, you will receive an email from us with instructions on how to close your account.