According to “increasing regulatory pressure and a lack of clear regulatory requirements,” US-based cryptocurrency exchange Bittrex will cease operations in the nation. Richie Lai, a co-founder of Bittrex, wrote in a blog post that US users won’t be able to trade on the exchange starting on April 14 and that US operations would be shut down entirely by the end of the month.
Lai informed customers that their money was secure and could be withdrawn right away. The 2014-founded cryptocurrency exchange supports over 250 coins and focuses on paired cryptocurrency exchanges.
Following a $53 million punishment from the Treasury’s Office of Foreign Assets Control and Financial Crime Enforcement Network last year for failing to stop users from Iran, Cuba, and other sanctioned countries from utilizing its platform, Bittrex has decided to cease operations in the US. Additionally, due to regulatory examination in New York, the platform was ordered to stop operating there due to worries about its capacity to identify money laundering and adhere to sanctions.
Following the disastrous collapse of FTX and other well-known digital asset enterprises, US officials have recently increased their surveillance of cryptocurrency businesses. Nexo, a cryptocurrency lender, stated in December that it was leaving the US market after receiving cease-and-desist orders from numerous states about its interest-earning products.
In addition, the business agreed to pay $22.5 million to resolve its multistate litigation. Similar to this, the SEC and cryptocurrency exchange Kraken have agreed to halt providing staking services or programs to customers in the nation and pay $30 million in fines.
In addition, the SEC has threatened legal action against Paxos, a US-registered company that issuing Binance’s stablecoin Binance USD (BUSD), for the issuance of BUSD tokens. BUSD is regarded as an unregistered security, the agency claimed. More recently, the authority threatened Coinbase, the biggest cryptocurrency exchange in the US, with legal action over some of the digital assets it lists, as well as its staking tool Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
A aggressive regulatory stance by the SEC, according to industry experts, could force the cryptocurrency sector to relocate outside of the US. In a recent blog post, Daniel Seifert, a leading attorney at Coinbase, stated that “other nations are eager to fill the vacuum that the US has left” and that “it’s hard to sit by and watch the US squander the opportunity it has been given.”
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