Cryptocurrency exchange Bittrex will shut down its US platform on April 30, according to the company’s announcement on Friday. After nine years, Bittrex co-founder and CEO Ritchie Lai stated that the current regulatory and economic environment in the US makes it “economically unviable” to continue operating the exchange in the country.
Lai cited unclear regulatory requirements being enforced without proper discussion or input as reasons for the closure, resulting in an uneven competitive landscape. He added that operations in the US are no longer viable for Bittrex.
Despite the shutdown of its US platform, Lai assured customers that all their funds are safe and available for withdrawal. The closure will not impact Bittrex Global, which operates in Europe, Canada and South America, among others, and will remain open for trading.
Bittrex’s decision to shut down its US platform isn’t the first time a crypto exchange has faced regulatory hurdles. Over the past few weeks and months, US regulators have increased their oversight of crypto-related businesses. Coinbase recently announced that it received a Wells Notice from the US Securities and Exchange Commission (SEC), while Kraken paid a $30 million fine in a settlement with the same agency after shutting down its crypto staking service.
Binance and its CEO and founder Changpeng Zhao were also named in a recent complaint by the US Commodity Futures Trading Commission (CFTC). The complaint alleges the offering of unregistered crypto derivative products in the US
The crypto industry has grappled with regulatory challenges in the US, with some companies deciding to exit the market altogether. However, other companies, such as Bittrex Global, continue to operate in other parts of the world and are expanding their reach.
Bittrex Global operates in over 100 countries and recently launched a new platform for institutional investors. The exchange’s shutdown of the US platform could 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 remain. Industry stakeholders must work with regulators to strike a balance between innovation and compliance to ensure healthy industry growth.
