Genesis Mining is the latest company to announce its departure from New York, following the formal introduction of the state's BitLicense.
In a blog post released yesterday, the cloud mining firm – which claims to serve over 50,000 customers – said it had no choice but to block anyone with a New York IP address from using its services.
"While advocates for the BitLicense say they want to protect consumers, what the act really does is stifle innovation. It’s complex, expensive, and comes with a set of guidelines that make it nearly impossible for any startup to comply with."
With the controversial legislation now in play, following its 8th August registration deadline, 10 bitcoin companies have announced their departure from New York, including Kraken, GoCoin and peer-to-peer marketplace LocalBitcoins. Some cite privacy concerns, while others have balked at the upfront costs and paperwork involved.
In its post, Genesis Mining compared the "unnecessary" legislation to the so-called 'Red Flag Acts' the UK imposed on early motor vehicles in the 17th century. While this red tape held back innovation in the country, elsewhere more permissive states benefited from a booming industry.
"While it may seem like a victory to those who passed it, it is important to understand the difference between winning a battle and winning a war," the company said.
Further Reading: Buy Our BitLicense Research Report