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.
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.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.