Bittrex, a popular crypto exchange, has announced that it will close its U.S. operations. The exchange made the decision due to regulatory uncertainties and rising compliance costs.
In a statement released on April 3, the company said it would close its exchange services for all U.S. customers as of April 30. Bittrex advised its U.S. users to withdraw their funds before the deadline or they will be transferred to a “state-regulated platform.”
As a direct result of continued regulatory uncertainty and the lack of interest from U.S. regulators regarding sensible policies that will foster innovation and improve the U.S. economy, Bittrex U.S. has made the difficult decision to withdraw and will close its U.S. operations, effective April 30, 2023″, the company wrote.
The decision comes as a surprise to many in the crypto community, as Bittrex has been a major player in the market since its launch in 2014. The exchange has earned a reputation for its robust security measures and wide range of tradable assets.
According to the company’s statement, Bittrex is taking this decision “with great sadness.” However, the exchange noted that the decision was necessary to comply with regulatory requirements in the United States. Bittrex has come under increased regulatory scrutiny in recent years, with both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) opening investigations into the exchange.
Bittrex’s decision to leave the U.S. market follows similar moves by other crypto exchanges, including Poloniex and Binance. These exchanges also cited regulatory uncertainties and compliance costs as reasons for their decision to restrict or leave the U.S. market.
According to a statement, Bittrex Global is now regulated in Bermuda and Liechtenstein. The firm will normally continue to operate outside the United States.
Bittrex’s decision to leave the U.S. market highlights the challenges crypto exchanges face in navigating this complex regulatory landscape.