Bittrex Shutting Down U.S. Operations Citing Economic Environment

Bittrex, a crypto exchange from Bellevue, Wash., will close its U.S. operations due to the current regulatory and economic environment. The company’s co-founder and CEO, Richie Lai, assured customers their money was safe and available to withdraw.

The company’s leader, Lai, wrote on their website that all customer money is safe and can be taken out. But the company can’t keep working in the current U.S. regulations and economy because it costs too much.

The exchange will keep working in other countries using Bittrex Global. Lai, Bill Shihara, and Rami Kawach started the company in 2014. They used to work at Amazon as security leaders. The exchange had almost 300 workers but had to let go of 83 employees recently.

They built technology that was ahead of everyone at the time. Full-service API. Near instant atomic transactions. Wallet infrastructure, handling more wallets than anyone.

Offline cold wallet solutions. In the post, Lai stated that hackers have never lost or stolen their funds. He also mentioned that their technology is straightforward and graceful.

Lai said that people who use the exchange can keep trading until April 14. But they have to take out their money by the end of April. Exchange is doing this because the U.S. government is making it harder for crypto companies to do business.

Bittrex Regulatory Requirements And Economic Environment

The exchange is having difficulty running its business in the United States because they’re unsure of the rules. Some crypto companies may have an advantage over others because the government does not always communicate effectively or listen to feedback.

Last October, the exchange was hit with about $29 million in fines by the U.S. Treasury Department for allegedly allowing people from sanctioned jurisdictions to use its platform and not meeting anti-money laundering requirements.

The crypto sector was also shaken by the collapse of the digital-asset exchange FTX last year. The prices of Bitcoin, Ethereum, and other coins fell steeply in the aftermath of FTX’s shutdown.

Bittrex’s exit from the U.S. market may prompt other crypto companies to reconsider their operations in the country. The move is also likely to fuel further discussions around the need for clearer regulations and guidelines for the crypto sector.

In the meantime, the exchange has assured its customers that their funds are safe and available for withdrawal, and the company will continue its operations outside the U.S. through Exchange Global.

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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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