Bittrex shuts down due to regulatory uncertainty
Crypto asset (virtual currency) exchange Bittrex announced on the 1st that it will close its US operations on April 30. The lack of regulatory transparency is cited as the main reason.
Due to continued regulatory uncertainty, we have made the difficult decision to wind down our US operations, effective April 30, 2023. All funds are safe and can be fully withdrawn immediately.
This does not affect customers @BittrexGlobal https://t.co/MY4u7XLk9z
— Bittrex (@BittrexExchange) March 31, 2023
Bittrex co-founder and CEO Ritchie Lai explained:
Continuing business in the current U.S. regulatory and economic environment is unprofitable and impossible.
Regulatory requirements are often unclear and enforced without proper discussion and input. The result is an unfair competitive environment.
Going forward, Bittrex executives continued that they plan to focus on making the global version of Bittrex successful outside the United States. The global version of Bittrex operates in Europe, Canada, South America, etc., and the closure of the US version of Bittrex will not affect these global versions of the business.
All US Bittrex customer funds are securely stored and can be withdrawn by customers who have verified their identity. Bittrex has given notice to withdraw all funds by April 30, 2023.
For more information, virtual currency withdrawals will be available for a full day until April 29, 2023, US time. The deadline for fiat currency withdrawals is April 24th for wire transfers and April 27th, 2023 for ACH (Automated Clearing House).
Bittrex is recommending withdrawing your funds as soon as possible in case of any unexpected delays. After the deadline, the user account will be deactivated and any funds remaining in the account may become inaccessible for some time.
Users will still be able to trade until April 14, but after this date all open positions will be closed and pending orders will be cancelled.
Notification to Coinbase
U.S. authorities have recently launched a flurry of legal action against cryptocurrency companies. The US Securities and Exchange Commission (SEC) in particular has also been criticized for cracking down on law enforcement without providing clear guidelines.
Most recently, cryptocurrency exchange Coinbase announced in March that it had received a letter from the SEC alleging that the exchange was in violation of securities laws. Some of the listed virtual currencies and the staking service “Coinbase Earn” were included.
What is staking
A system or service that rewards you by depositing a certain amount of virtual currency for a specified period of time. Rewards can be received as compensation for contributing to the operation of the blockchain.
Coinbase claims the SEC did not respond to questions about which tokens are securities. He also explained that he had been proposing to register the business with the SEC for months, but the SEC refused to act.
connection: U.S. SEC investigates Coinbase on suspicion of violating securities laws Sends Wells notice
In the same month, the SEC also filed a lawsuit against Tron (TRX) founder Justin Sun for selling unregistered securities and violating market manipulation clauses.
connection: US SEC sues TRON founder Justin Sun and others