Xapo, a Bitcoin startup, announced today that they have left the North Carolina Bitcoin market, following the advance of North Carolina’s revamp of the Money Transmitters Act earlier this month.
The senate of North Carolina has already passed a bill regarding Bitcoins and its services, which is pending approval from the states governor. If the bill is passed, applicants will need to have a minimum net worth of $250,000 and also post a security bond of $150,000, an amount which can change later on based on volume.
“It is correct that we are not operating in North Carolina. We do not have a money transmitter license in that state and we think the effort to comply with their upcoming bitcoin bills is not justified by the number of customers we have there” said Wences Casares, founder of Xapo.
Xapo is not the first company to pull out of an American state due to regulatory insecurity. Coinbase also seized their service in Wyoming due to new regulations and ShapeShift also left New York after they created their Bitlicense.
Hopefully we will see some more realistic Bitcoin regulations coming in the future, so it will be possible for smaller businesses to embrace the Bitcoin in a proper way.