OTC Bitcoin Exchange itBit Stops Servicing Texas Residents

New York-based bitcoin exchange itBit has decided to stop providing services to Texas residents. According to an email transcript posted by Reddit user Zapf03, the exchange has started instructing their Texas-based clients to start withdrawing their funds.

The email states:

“We regret to inform you that starting today, itBit will no longer be supporting Texas residents.”

ItBit has set an April 14th deadline for all their Texas-based customers to withdraw any remaining funds, and any funds not withdrawn will be frozen!

“We ask that you please withdraw all funds from your itBit trading account by close of business on Thursday, April 14th.”

While there hasn’t been any official posting on itBit’s blog, itBit representative Kyle Arteaga confirmed the company’s decision to cut off services to its customers in Texas, in a phone interview with CoinDesk.

Arteaga said:

“I can confirm that itBit is no longer supporting Texas residents at this time.”

It is unclear at this point what exactly caused itBit to take such drastic measures. However, the Texas Department of Banking released a memorandum in 2014, stating that digital currencies are not legal tender in Texas. The email also mentioned that itBit may at some point reopen its doors to residents of Texas.

“We will contact you if our status in Texas changes in the future.”


If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.