A Decentralised Crypto Exchange (DEX) IDEX trading with Ethereum tokens yesterday announced on their official Twitter account that they will no more allow traders from New York.
***Notice: #IDEX will begin blocking new orders from users with New York State IP addresses on Thursday, October 25th (6pm UTC). Cancels and withdrawals will remain active.
— Aurora (IDEX) *Not Giving Away ETH* (@Aurora_dao) 24 October 2018
IDEX is also raised $5.3 million USD in an ICO last January. And is ranked at 114th largest cryptocurrency exchange according to CoinMarketCap.
This is not the first time the IDEX has banned, The Platform had updated its terms and services on 20th sept. In which users from Washington and North Korea are also banned to trade on the exchange.
But for New Yorkers the ban will begin from Today 25th October 6 pm UTC, As they will not be allowed to place new orders on the platform. Any IP address from New York will be detected and blocked to place new orders from the exchange.
The reason behind banning New York Users
This is mainly due to the “Bitlicense” framework which was drafted in New York. This framework is very strict for cryptocurrency exchanges and only a few crypto firms have received authorization to run their operations in New York.
Such regional restrictions are causing issues to the cryptocurrency platforms and that is the reason they are not able to operate. Also, other reason will be due to the hack on crypto exchanges.
But some users in New York are able to access the platform using VPN. Still, it is not known if the previously owned Ethereum addresses associated with New York IP’s will be blocked too.
This is why if the cryptocurrency regulation is formed then its good to operate but if the rules are strict then it will make exchanges hard to operate in the region and causes them to leave it.
Join the newsletter to receive the latest updates in your inbox.