Crypto exchange Bittrex ceases US operations citing regulatory challenges; Analyst expects more to come
- Bittrex announced that the exchange’s global arm would remain unaffected only United States operations will be shut down.
- The exchange’s US arm’s shuttering news came on the ninth anniversary of Bittrex.
- The Securities and Exchange Commission is arming up to enforce regulation further, demanding $2.436 billion in funding.
On the one hand, the Securities and Exchange Commission’s (SEC) regulation by enforcement approach has many people concerned. On the other hand, just the fear of regulatory scrutiny itself is resulting in crypto companies shutting themselves down, with two firms already down in a week.
The SEC and its fear in the crypto space
Cryptocurrency exchange Bittrex, on March 31, announced that it would be winding down its operations in the United States. The company clarified that even though they were in the process of ceasing operations, the customer funds are completely safe and can be withdrawn at any time.
Adding to the intensity of the situation, March 31 also marked the ninth anniversary of the crypto exchange. The reason behind this decision, as stated by Bittrex, was the present condition of the crypto ecosystem. The exchange added to the regulatory pressure by saying,
“Regulatory requirements are often unclear and enforced without appropriate discussion or input, resulting in an uneven competitive landscape. In the end, we made great strides toward accomplishing our goal of maturing the crypto space. However, operating in the US is no longer feasible and Bill, Rami and I will focus on helping Bittrex Global succeed outside the US.”
Bittrex noted that customers only have time till April 20 to withdraw their assets. This entire decision of the crypto exchange winding down operations has not been sitting well with the community, with many demanding clearer regulations. One such popular investor Ciervo King tweeted,
The hostile regulatory climate by the US government will continue to drive away innovation. #Bittrex will not be the last #cryptocurrency firm or #blockchain developer to flee the US. https://t.co/HImMOblhWE
— Ciervo King | Crypto (@CiervoKing) March 31, 2023
Bittrex marks the second company that regulatory concerns have brought down. Crypto asset trading platform Beaxy was charged with failure to register as a national securities exchange.
However, before the SEC could announce its charges, Beaxy a day before announced that it would be shutting down its operations.
The decision to end it beforehand makes sense, as the regulators are going after anyone and everyone. In the last three months, Terra and CEO Do Kwon, TRON and its founder Justin Sun as well as Binance and head Chanhpeng Zhao have all been charged with violation of multiple laws. This has raised concerns among companies significantly.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
