San Francisco-based Bitcoin company Coinbase has announced the suspension of its services in the state of Wyoming due to banking regulatory policies that are likely to “render continued operations impractical.”
“Coinbase is indefinitely suspending its business in Wyoming,” the company announced on its website, confirming the firm has no other plans at the moment.
“We understand that the Wyoming Division of Banking interprets the Wyoming Money Transmitter Act to require licensure of entities which offer hosted Bitcoin wallet services, and that as a condition of such licensure, licensees must maintain dedicated fiat currency reserves in amount equal to the aggregate face value of all Bitcoin held on behalf of customers,” Coinbase wrote.
“Although Coinbase securely maintains 100% of all customer Bitcoin, it is impractical, costly, and inefficient for us to establish a redundant reserve of fiat currency in equivalent value.”
The company has apologized to the Wyoming Bitcoiners, adding that “we cannot currently project if or when our services may be restored.”
The Wyoming Bitcoin community is now afraid that other Bitcoin companies will follow Coinbase’s example, suspending all cryptocurrency-related services in the state.