US-based crypto exchange Bittrex discontinues operations in response to increasing regulatory pressure.
In a move reflecting the growing regulatory pressures faced by the cryptocurrency industry in the United States, Bittrex, a leading crypto exchange founded in 2014 by three former Amazon employees, has announced the closure of its US operations. The decision comes as the company finds it “no longer feasible” to operate within the current US regulatory and economic climate.
Richie Lai, Bittrex co-founder and US CEO, took to Twitter to express his concerns, stating that continuing operations in the US was “not economically viable.” Customers are assured that their funds will be available for withdrawal until the end of April. The company’s global business outside of the US remains unaffected and will continue to operate.
This development follows a trend of digital-asset firms leaving the US due to increased regulatory scrutiny. Crypto lender Nexo, for instance, exited the US market last December after receiving cease-and-desist orders from multiple states over its interest-earning products. The US Securities and Exchange Commission (SEC) has been particularly active, bringing numerous enforcement actions against large and small industry players alike, such as Genesis Global Capital, Gemini Trust, and Kraken.
Bittrex itself faced a $53 million fine last October, issued by the Treasury’s Office of Foreign Assets Control and Financial Crime Enforcement Network. The fine was in response to the company’s failure to prevent customers in Iran, Cuba, and other sanctioned countries from using its platform. In a statement, Bittrex expressed its satisfaction with the resolution of the matter on “mutually agreeable terms.” In 2019, New York regulators instructed the company to cease operations in the state, citing concerns over its ability to detect money laundering and comply with sanctions.
According to CoinGecko data, Bittrex’s trading volume in the last 24 hours stands at approximately $17 million, a figure dwarfed by Coinbase Global Inc.’s $1.4 billion volume. Bittrex was co-founded by Bill Shihara, a former security engineering manager at Amazon, alongside two other cybersecurity specialists from the online retail giant. In a tweet, Lai proudly stated that Bittrex has “never lost funds or been hacked.”
