Cryptocurrency exchange Bittrex is shutting down its operations in the US due to “continued regulatory uncertainty” as US regulators increase their enforcement efforts against cryptocurrency trading platforms. Regulatory requirements currently “are often unclear and are applied without proper discussion or input, resulting in an uneven competitive landscape,” Bittrex described.
Bittrex exits the US crypto market
The Bittrex cryptocurrency exchange announced the shutdown of its US trading on Friday. The exchange tweeted:
Due to continued regulatory uncertainty, we have made the difficult decision to liquidate our US operations effective April 30, 2023.
“All funds are safe and can be fully withdrawn immediately,” the announcement adds, emphasizing that the shutdown does not affect clients outside of the US who use Bittrex’s global platform.
Richie Lai, CEO and co-founder of Bittrex, explained: “It is simply not economically viable for us to continue to operate in the current US economic and regulatory environment.” Noting that his trading platform turned nine this month, Lai opined:
Nine years later, the crypto ecosystem is very different. Regulatory requirements are often unclear and are applied without proper discussion or input, resulting in an uneven competitive landscape.
Bittrex noted that the last full day that users can withdraw their cryptocurrency is April 29. Additionally, the last day to submit fiat withdrawals is April 24 at 5 pm PDT for transfers and April 27 at 5 pm PDT for ACH.
In the US, cryptocurrency companies are facing increased regulatory scrutiny as the Securities and Exchange Commission (SEC) is prioritizing compliance efforts. The SEC has targeted several crypto ventures, such as Wells issuing a notice to Coinbase and filing charges against Kraken over the exchange’s staking program.
SEC Chairman Gary Gensler recently called for more funding for his agency to combat misconduct in the crypto space. He has claimed that all crypto tokens except bitcoin are securities. Additionally, the Commodity Futures Trading Commission (CFTC) filed a complaint against Binance and its CEO, Changpeng Zhao (CZ).
What do you think about Bittrex closing its US operations? Let us know in the comments section.
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