Bittrex, a United States–based cryptocurrency exchange platform, has issued a response to the recent setback in its plans to expand to New York.

Yesterday, the New York State Department of Financial Services (NYDFS) rejected the exchange’s BitLicense application, a requirement for offering crypto-based services to New Yorkers.

NYDFS also published a letter addressed to Bittrex CEO Bill Shihara, where it cited inadequate Anti-Money Laundering (AML), Know-Your-Customer (KYC) and Office of Foreign Assets Control (OFAC) standards as reasons for its denial.

Bittrex had applied for the permit in August 2015 and had been operating in New York under BitLicense’s safe harbor provision while awaiting approval to be a licensed bitcoin service provider in the state.

In its official response to the agency, Bittrex expressed its disappointment at this setback, disagreeing with the state regulator’s assessment of its AML and KYC standards.

“Bittrex is saddened and disappointed in today’s decision by the New York Department of…

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