Crypto exchange Bittrex on Friday announced it would be winding up its subsidiary Bittrex U.S. on April 30, 2023, citing regulatory uncertainties and inconclusive agreements between the firm and regulators in the country.
“As a direct result of continued regulatory uncertainty and a lack of interest from US regulators regarding sensible policies that will foster innovation and enhance the American economy, Bittrex US has made a difficult decision to wind down and will close its US operation,” Bittrex co-founder Richie Lai, stated.
Bittrex confirmed that customers’ funds are safe, noting that they can withdraw their investments whenever they deem fit before the stipulated closing date. The company also lauded the support of its US customers, insinuating that it had little option but to shut down operations.
Founded in 2014, Bittrex is among the biggest exchanges in the US. The exchange is based in Washington and has been in America for nine years. Three senior security managers at Amazon and Microsoft founded Bittrex: Bill Shihara, Richie Lai, and Rami Kawach.
Bittrex to Continue With Other Crypto-Friendly Countries
Lai stated that the wind down was only for its US subsidiary, noting that the exchange will continue to offer its services to other non-US customers. The firm already operates in some parts of Europe, South America, Canada, Vietnam, Uruguay, Mongolia, and Singapore.
The recent feud between Bittrex and US regulators was a $53 million fine from the Office of Foreign Assets Control (OFAC) for violating several sections of the Bank Secrecy Act. In the lawsuit, U.S. regulators accused Bittrex of not submitting reports on several suspicious transactions for three years.
US Regulators’ Crypto Outcry Continues
In a lengthy speech earlier in the year, Coinbase CEO Brian Armstrong blasted the approach of US regulators towards crypto firms in the country. He noted that America was meant to be a good breeding site for crypto innovations; however, the country’s regulatory body is bent on sending the industry packing from the US.
The recent wave of regulatory crackdowns on crypto firms by the US Securities and Exchange Commission (SEC) has continued to spark missed reactions among investors in the state, who are now looking elsewhere for chaos-free digital asset investments.
A majority of crypto firms based in the US have all felt the wrath of the SEC and other regulators, with Binance suffering the latest lawsuit from them. Sushi, Coinbase, and Kucoin have all faced the post-FTX crackdown, and regulators intend to continue the double down.
