Virtual currency startup Coinbase has suspended operations in Wyoming, citing 'impractical' regulatory policies.
The Wyoming Division of Banking has recently passed rules which require crypto-currency operators to hold fiat currency reserves in amount equal to the aggregate face value of all bitcoin held on behalf of customers.
In a statement, the firm says: "Although Coinbase securely maintains 100% of all customer bitcoin, it is impractical, costly, and inefficient for us to establish a redundant reserve of fiat currency in equivalent value."
Coinbase says the suspension of service is indefinite: "We cannot currently project if or when our services may be restored."