Crypto Exchange Bittrex To Exit The US Amidst Regulatory Uncertainty

Twitter icon  •  Published 11ヶ月前  •  Hassan Maishera

Cryptocurrency exchange Bittrex has announced that it would wind down its operations in the United States due to regulatory uncertainties.

TL;DR

  • Bittrex is shutting down its operations in the United States after years in the country.

  • The crypto exchange cites regulatory uncertainty as the major reason it is exiting the US market.

Bittrex Shuts Down Its Operations In The US

Cryptocurrency exchange Bittrex has announced that it is leaving the United States after providing services to investors for years. The crypto exchange cites the current regulatory climate in the United States as the major reason behind its decision.

In a message to customers over the weekend, co-founder and CEO Richie Lai said;

"It’s just not economically viable for us to continue to operate in the current U.S. regulatory and economic environment. Regulatory requirements are often unclear and enforced without appropriate discussion or input, resulting in an uneven competitive landscape."

This latest development comes as the leading cryptocurrency exchanges, including Coinbase, Binance, and Kraken, face legal scrutiny from regulators in the United States in recent months.

There has been an increasing call for regulatory clarity in the US as the issue begins to take on political leanings ahead of next year’s election. 

While commenting on the recent events, Galaxy Digital CEO Michael Novogratz pointed out that the crypto industry was under attack from US regulators, and he believed Operation Choke Point 2.0 was real. Operation Choke Point 2.0 is a term used by some to speculate about the possibility of a broader, coordinated crackdown. 

SEC Chair Gary Gensler said last week that existing rules cover cryptocurrency assets and no new legislation is necessary. 

Bittrex’s CEO revealed that all customer funds were safe and users can be able to withdraw their assets as long as they have verified their accounts. Withdrawals would be processed until April 30, the CEO added. He concluded that;

"Regulatory requirements are often unclear and enforced without appropriate discussion or input, resulting in an uneven competitive landscape. I will shift my focus to helping Bittrex Global succeed outside the U.S."

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.