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- 1 Bittrex has violated the laws by operating as a crypto exchange- filing notes.
- 2 The crypto exchange has more than 500K active monthly users.
Bittrex, the leading cryptocurrency exchange, is reportedly facing potential action from the US Securities and Exchange Commission despite preparing to shut down its operations in the country.
On April 16, The Wall Street Journal reported that a staff of the SEC told David Maria, the General Counsel of Bittrex, that the agency sued the exchange over alleged violations of investor-protection laws.
Earlier in March 2023, the enforcement unit of the SEC informed the crypto exchange about the potential action from the SEC. Moreover, David reportedly said that the Seattle-based crypto exchange is already working on wrapping up its operations in the country.
The notice issued by SEC mentioned that Bittrex violated the laws by operating as a crypto exchange, broker-dealer, and clearing house without proper registration in the country.
David said Bittrex discussed registering in the US with the SEC. Still, the exchange found no opportunity to follow the rules of the SEC without essentially halting all its revenue-generating operations in the country.
Attorney Maria said that Bittrex, the crypto exchange failed to comply with SEC rules because the agency never provided clear regulations for crypto in the first place. He added, “The lack of regulatory clarity here results in substantial costs and no certainty as to what can and can’t be offered.”
Although Bittrex has no clear sign that the SEC will file a lawsuit against the crypto exchange for wrapping operations in the United States, the lawyer reportedly added if the agency decides to take action, Bittrex will pursue litigation as long as the regulator “comes up with a reasonable settlement offer.”
Earlier on April 1, TheCoinRepublic reported that Bittrex planned to wrap up US operations by the end of April 2023.
According to Crunchbase data, Bittrex Global acquired Tradedash on July 3 for an undisclosed amount. Bittrex has personally invested in the VALR organization, focused on developing a financial system that recognizes the oneness of humanity.
Struggling Crypto Exchanges Globally
Over ten crypto exchanges have wrapped their operations in different parts of the world because of the countries’ harsh rules and regulations. Earlier on February 11, Kraken, one of the leading crypto exchanges, was fined by SEC and was asked to pay $30 million in a settlement.
As per the filing, the crypto exchange states that its staking investment program offers an easy-to-use platform and benefits that device from Kraken’s efforts on behalf of investors, including Kraken’s strategies to obtain regular investment returns and payouts.
In the second week of March 2023, the Securities and Exchange Commission issued an enforcement notice against the leading crypto exchange Coinbase.
This issued notice details that the agency is planning enforcement action in the future, which could include either an injunction or cease-and-desist, without any specification of exactly which activities were found violating laws.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
