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Cryptocurrency exchange Bittrex will shut down its US platform on April 30, according to an announcement from the company on Friday. After nine years in operation, Bittrex co-founder and CEO, Ritchie Lai, stated that US regulations and the current economic environment make it “economically unfeasible” for the exchange to continue operating in the country.
Lai cited unclear regulatory requirements that were enforced without proper discussion or input, resulting in an uneven competitive landscape as the reason behind the closure. He added that Bittrex was no longer viable to operate in the US.
Even though the US platform was closed, Lai assured customers that all their funds were safe and available for withdrawal. The closure will not affect Bittrex Global, which operates in Europe, Canada and South America, among other locales, and will remain open for trading.
Bittrex’s decision to shut down its US platform is not the first time the crypto exchange has faced regulatory hurdles. In recent weeks and months, US regulators have stepped up their scrutiny of crypto-related companies. Coinbase recently revealed it received a Wells Notice from the US Securities and Exchange Commission (SEC), while Kraken is paying a $30 million fine in a settlement with the same agency after shutting down its crypto staking services.
Binance and its CEO and founder Changpeng Zhao were also recently named in a complaint filed by the US Commodity Futures Trading Commission (CFTC). The complaint alleges the offering of crypto derivative products that are not registered in the US
The crypto industry has been grappling with regulatory challenges in the US, with some companies opting to exit the market altogether. However, other companies, such as Bittrex Global, continue to operate and expand their reach in other parts of the world.
Bittrex Global operates in more than 100 countries and recently launched a new platform for institutional investors. The exchange’s shutdown of US platforms may be a strategic decision to focus on expanding its operations elsewhere.
The crypto industry is still in its infancy, and regulatory challenges are expected to continue. Industry stakeholders need to work with regulators to strike a balance between innovation and compliance to ensure healthy industry growth.
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