BlockchainCrypto AdoptionCryptocurrencyCryptocurrency RegulationEthereum (ETH)NewsTrading

Bittrex Cites Regulatory Hurdles As Reason For Closing US Operations

It’s a sad day for the cryptocurrency community as news of Bittrex’s decision to close its operations in the United States has come to light. This move comes from regulatory hurdles the government and other US-based financial institutions pose.

This news follows an earlier US government’s legal action against leading exchanges like Coinbase, Kraken, and Binance.

Bittrex Shuts Down US Exchange Activities

On March 31st, Bittrex, one of the most significant and longest-established US cryptocurrency exchanges, declared the closing of its services to its US clients due to the nation’s current regulatory and economic climate.

However, the announcement states that customers’ finances would remain safe and ready for withdrawal until the termination date. Richie Lai, the co-founder of Bittrex, complained that the US regulatory atmosphere had generated an unbalanced competitive arena, fundamentally altering the company’s activities, despite its years of functioning in the nation.

He said the crypto sphere is vastly dissimilar after nine years. Regulatory demands are frequently indistinct and enforced without appropriate discourse or input.

He noted that the difficulties have made it impossible to continue operating in the country. Consequently, the board of directors will shut down the firm’s US-related services by April 30th, allowing customers to retrieve their funds before that time.

📰 Also read:  Report: 'Bitcoin' Google Search Volume Declines, While 'Meme Coin' Increases

He said all user funds are secure and ready to be withdrawn (for those who have completed Know Your Customer registration). Lai further revealed that trading would be allowed until April 14th, 2023, and all funds should be drawn on or before April 30th, 2023.

US Regulators Ramp Up Pressure On Exchanges

US regulators have been enforcing regulatory policies on crypto firms in the past few months, particularly crypto exchanges. As a result, various exchanges have been put in a situation where they need to decide between stopping their business operations or shifting their base of operations outside of the US to evade potential fines and hassles.

For instance, the SEC issued a Wells notice to Coinbase on March 22nd, implying probable measures against the exchange for potential breaches of securities laws associated with its stake-related services and digital wallet.

Also, the CFTC took legal action against Binance’s CEO Changpeng Zhao and Binance.com, a worldwide cryptocurrency platform, making it the latest exchange to be targeted by regulators. Meanwhile, Gary Gensler, the current SEC chief, has opined that all activities performed on the Ethereum blockchain are subject to the jurisdiction of the United States. He further stated that most cryptocurrencies could be considered securities.

📰 Also read:  A Deep Dive Into Crypto Laws and Regulations in Turkey

Editorial credit: Primakov / Shutterstock.com


Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  Republican Party Secures Majority in U.S. Congress, Says Elon Musk

Bradley Nelson

Bradley Nelson is a US based cryptocurrency news writer for Tokenhell, he helps readers stay up to date with the latest trends and news from the blockchain and crypto world. Bradley has been a crypto enthusiast since 2018.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content