Coinbase Suspends Operations in Wyoming

Jun 4, 2015 at 9:36 a.m. UTC
Updated Sep 11, 2021 at 11:42 a.m. UTC

San Francisco-based bitcoin company Coinbase has suspended operations in Wyoming until further notice.

A company blog post cited the Wyoming Division of Banking's recent regulatory legislation as a decisive factor for ceasing business in the western US state, noting it would render continued operations impractical.

"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 aggregate face value of all bitcoin held on behalf of customers," noted the post.

Coinbase

said it would be impractical, costly and inefficient for the company to establish a redundant reserve of fiat currency in equivalent value.

"We understand this suspension will inconvenience our Wyoming customers and we apologise that we cannot currently project if or when our services may be restored," it concluded.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.