- Bittrex to wind down its U.S. operations due to unclear regulatory requirements and economic environment.
- Bittrex customers’ funds are safe and should be withdrawn by April 30; trading ends on April 14.
- Bittrex Global platform will continue operating outside the U.S. while regulators crack down on crypto.
Bittrex, a cryptocurrency exchange based in the United States, has declared that it will be concluding its operations within the country.
In an official statement released on Friday, Bittrex stated that its customers’ funds are secure and recommended that they be withdrawn by April 30th. Trading services will remain operational for clients until April 14th.
Additionally, the announcement stated that Bittrex will continue to operate its Bittrex Global platform, which is designed for traders located outside of the United States.
Richie Lai, co-founder, and CEO of Bittrex explained on Twitter that continuing to operate the exchange within the “current U.S. regulatory and economic environment” was not financially feasible.
Lai further elaborated that regulatory requirements are frequently vague and executed without adequate discussion or feedback, leading to an unbalanced competitive environment.
Established in 2013, Bittrex is a Seattle-based company and currently the 71st largest digital asset exchange, with a daily trading volume of only $11.7 million as reported by CoinGecko. This is even less than some decentralized exchanges like Uniswap, Pancakeswap, and Orca.
Bittrex’s decision to wind down its operations in the U.S. coincides with what could be the most severe crackdown on the crypto industry by U.S. regulators to date.
The U.S. Securities and Exchange Commission (SEC) imposed fines on several American crypto firms, including Kraken, a popular exchange, last month.
Just last week, the SEC sent a Wells Notice to Coinbase, the largest crypto exchange in the United States, alleging that the staking products offered by the San Francisco-based company are unregistered securities. The Wells Notice serves as a warning that an enforcement action may be imminent.
On Monday, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, the largest cryptocurrency exchange globally, alleging that the company violated trading and derivatives regulations.
In the previous year, Bittrex settled with U.S. authorities for $29 million over “apparent violations” of sanctions against countries such as Iran, Cuba, and Syria.
