Bittrex ceases operations in the US due to regulatory complications

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By Degen Lipsa

One of the biggest and most established US exchanges, Bittrex, stated on March 31 that it was ceasing operations because of the “regulatory and economic situation” in the nation at the time.

Bittrex exits US exits, blames regulatory uncertainities

Users’ funds will continue to be safe and accessible for withdrawal at any time during the winding down of US operations, according to the official statement. Customers utilising Bittrex Global outside of the country won’t be impacted by this announcement.

The US regulatory climate has produced an unequal competitive landscape, which is eventually harming the operations of the company, stated Richie Lai, co-founder of Bittrex. This is true despite the company having operated in the country for more than nine years.

Due to these obstacles, he claimed that working in the nation is “no longer possible.” As a result, the Board of Directors decided to shut down on April 30 while still allowing consumers to withdraw their money earlier.

The company’s founders have made the decision to concentrate on assisting Bittrex Global’s success outside of the United States. According to Bittrex, US clients don’t need to be concerned about the security of their money because all of their money is secure and ready for withdrawal. The trading platform announced that it will allow trading up until April 14, 2023, but recommended users to complete all withdrawals by April 30.

Founded in 2014 by three cybersecurity engineers, Bittrex offered features like full-service API, near-instant atomic transactions, wallet infrastructure, and offline cold wallet solutions.

Bittrex CEO shares a tweet on it's closure
Bittrex Ceo shares a bittersweet tweet to all of it’s users.

Now, the curiosity arises of what is going on in US regulatory and why it lead to Bittrex exit ?

In recent months, US regulators have increasingly curtailed the latitude they had previously given to exchanges, despite the fact that many businesses now find it difficult to comply with the evolving regulatory standards.

This has forced some exchanges to decide between closing their headquarters or relocating them outside of the United States in order to avoid penalties and needless difficulty.

For instance, on March 22, the US Securities and Exchange Commission (SEC) sent Coinbase a Wells notice, warning of prospective enforcement action for “potential breaches of securities laws” relating to the exchange’s staking services and digital wallets. indicates.

Vice President and Regional Director of Coinbase Europe, Daniel Seifert, responded to this threat by saying, “The US has left a hole that other countries are ready to fill.” In other words, if regulators continue to target the exchange, they will move to another country, as Bittrex plans to do.

This should be considered since Gary Gensler, the current SEC chairman, has previously indicated that, in accordance with his logic, any transactions made on the Ethereum blockchain are subject to U.S. law. The majority of cryptocurrencies, he continued, are securities, which, if accepted as the standard by various regulatory bodies, may potentially undermine the nation’s cryptocurrency business.

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