• Bittrex, a cryptocurrency exchange in the United States, announced that they will be shutting down their operations due to regulatory challenges.
• Funds are safe and customers can withdraw money before April 30th.
• Recent moves by US watchdogs on crypto have affected exchanges compliance with growing regulations.
Bittrex To Shut Down US Operations
Bittrex, one of the oldest cryptocurrency exchanges in the United States, stated on March 31st that it would be shutting down its operations owing to the “regulatory and economic climate” in the nation. All funds are safe and can be withdrawn immediately before April 30th when operations officially come to an end.
Reason Behind Shutdown
Richie Lai, one of the co-founders of Bittrex, noted that the regulatory framework in the country had produced an unequal competition field. As such, continuing business operations was “no longer possible due to these challenges” leading the board of directors to reach a conclusion that processes should be terminated on April 30th.
Recent Moves By US Watchdogs On Crypto
In recent months, US authorities have steadily decreased freedom offered to exchanges for years even though these firms comply with growing regulatory rules. A significant example is when The United States Securities and Exchange Commission issued a Wells notice against Coinbase indicating legal action might take place for “possible violations of securities laws” regarding their staking services and digital wallet. Binance is another example as it was under investigation by authorities after The Commodity Futures Trading Commission filed a lawsuit against Changpeng Zhao and Binance.com.
Due to increased regulation in the USA around cryptocurrencies, many exchanges find themselves on a difficult path which has led Bittrex to announce they will be winding down their U.S operation at end of April this year with all funds safe and accessible for withdrawal at any time before then