Bittrex, a Seattle-based cryptocurrency exchange, announced on Friday that it would be winding down its operations in the U.S. According to the exchange, customers’ funds are secure and must be withdrawn by April 30th. Trading services will remain available to clients until April 14th.
Reasons for Shutdown
Richie Lai, the co-founder and CEO of Bittrex, attributed the exchange’s shutdown to the prevailing economic and regulatory situation in the United States. Lai pointed out that unclear regulatory mandates and their arbitrary enforcement had led to an uneven competitive environment. He also emphasized that operating the exchange was not financially feasible in the current scenario.
Bittrex’s Status in the Industry
Bittrex, which was established in 2013, is a Seattle-based company, albeit relatively small in size. As per CoinGecko, the exchange ranks 71st among digital asset exchanges and records a trading volume of only $11.7 million within 24 hours, which is lower than certain decentralized exchanges like Uniswap, Pancakeswap, and Orca.
Impact of U.S. Regulatory Crackdown
Bittrex’s decision to wind down its U.S. operations coincides with the regulatory authorities in the country cracking down on the cryptocurrency industry. In the previous year, the exchange agreed to pay $29 million in settlement for non-compliance with sanctions against countries like Iran, Cuba, and Syria.
Several American crypto firms, including the popular Kraken, have been fined by the U.S. Securities and Exchange Commission (SEC). Recently, the SEC sent a Wells Notice to Coinbase, the largest crypto exchange in the U.S. that is publicly traded, claiming that the staking products offered by the San Francisco-based firm are unregistered securities. This notice implies that an enforcement action is highly probable.
The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, the largest cryptocurrency exchange globally, on Monday, claiming that the company breached trading and derivatives regulations.
Conclusion
Bittrex’s shutdown is a blow to the U.S. crypto industry, as it struggles to navigate a rapidly evolving regulatory environment. The exchange’s decision to shut down comes at a time when U.S. regulators are tightening their grip on the industry. While Bittrex assures its customers that their funds are safe, it remains to be seen what impact the shutdown will have on the exchange’s clients and the broader crypto community.
