The city that never sleeps is becoming the city where you can't sleep in an Airbnb (NASDAQ: ABNB).

New York City passed strict regulations on Airbnbs and short-term rentals last fall, effectively banning them. According to the new rules, short-term rental hosts must be present during the stay, and cannot rent full units. They can also only have two guests maximum, and the hosts must register with the city.

Regulation has long been seen as the biggest peril Airbnb faced, and the NYC ban may be the most significant case yet as the city was one of the company's biggest rental markets. Airbnb fought the regulations in court, but ultimately did not prevail.

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Source Fool.com