The post Regulatory Uncertainty Forces Bittrex to Shut Operations In USA! What’s Next? appeared first on Coinpedia Fintech News
One of the biggest cryptocurrency exchanges in the world, bittrex
, has declared that it will be discontinuing operations in the US by the end of the month. The choice was made in reaction to increased regulatory scrutiny of the cryptocurrency market and uncertain economic conditions in the United States. The announcement came on the platform’s ninth anniversary, marking a bittersweet moment for the company. Read on.
The reason behind Bittrex’s decision
Bittrex took to Twitter to announce that they have arrived at a tough decision to cease their operations in the United States, citing the persistent ambiguity surrounding regulations as the reason. The move will take effect from April 30, 2023. On top of that, Bittrex made it clear that all funds are secure and readily available for withdrawal without delay.
Richie Lai, co-founder, and CEO said that as the cryptocurrency ecosystem developed, regulatory requirements had grown to be more “unclear” and “enforced, without appropriate discussion or input,” creating an unlevel playing field for competitors. Due to the current economic conditions, Bittrex can no longer sustain its activities in the United States.
Overbearing regulations are hurting Crypto Companies in the USA
American crypto companies, including Kraken and Coinbase, have already been fined, with Coinbase receiving a Wells Notice for alleged unregistered securities. The world’s largest crypto exchange, binance
, was also sued by the Commodity Futures Trading Commission (CFTC) recently.
Related: Ripple Execs Concerned About SEC’s Enforcement Approach
The regulatory authorities in the United States, namely the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have adopted a stringent and firm approach with regard to their regulatory measures.
This unfavorable disposition towards the cryptocurrency industry in the country does not bode well for its overall atmosphere. The decision by Bittrex to wind down its operations in the U.S. is indicative of the regulatory pressures faced by such companies and may potentially set a precedent for other market players to follow suit.
Do you think other exchanges will soon exit the USA as well?