By Michael Scott
Liechtenstein-headquartered Bittrex Global revealed on Monday, November 20, that it will cease all operations. The announcement by Bittrex Global marks another crypto business collapsing under the burdensome regulatory enforcement in the US.
Bittrex Global issued a Monday, December 4 deadline when it will wind down all operations, replicating the closure of the US exchange operations in March this year.
Bittrex Surrenders to Regulatory Struggles with Shut Down
Bittrex admitted struggles with regulatory enforcement hindering its ability to offer crypto exchange services. Bittrex shuttered the US operations, terming them uneconomical to sustain.
Bittrex Global attributed the closure of the US exchange to the lawsuit and resulting $29 million settlement with the Gary Gensler-chaired SEC over alleged violation of the federal securities laws.
Bittrex Global regretted the decision published on Monday, November 20, post on the X platform declaring it was terminating operations. The tweet informed the community that customers could only withdraw their crypto assets upon the expiration of the December 4 deadline.
Bittrex Global urged the customers to access and empty their accounts within the two-week window as it closed shop.
A revisit of Bittrex’s struggles against the punitive enforcement actions featured grief expressed by the co-founder and chief Richie Lai in March. The executive read torment in the US regulatory approach towards crypto.
Lai labeled the US regulatory requirements unclear and often enforced without accommodating appropriate discussions. The absence of input from the accused crypto companies results in an uneven competitive landscape that often strangles the small and mid-sized operators.
SEC’s Enforcement Drags Bittrex to Its Deathbed
Terminating operations in the US turned prophetic for Bittrex as the global exchange platform replicated the closure. It marked yet another exit for a crypto business; though not a titan, Bittrex ranked among the top 100 digital asset exchanges globally, as per CoinGecko.
Bittrex realized a modest trading volume of $6 million compared to the $1.8 billion by second-placed crypto exchange Coinbase. Such is still negligible activity given that the largest crypto exchange, Binance, averaged over $7 billion per CoinGecko data.
Bittrex Global’s closure mirrors the move by crypto exchange Beaxy, sued by the SEC in March this year, alleging failure to register its exchange services. Also, the SEC accused Beaxy founder of misappropriating customer funds, leading to its shutdown over the charges.
The confirmed shutdown of Bittrex Global yields ground advanced by the crypto industry operators to oppose the SEC’s approach to rule by enforcement. Executives of crypto exchanges Binance, Coinbase, and Kraken have offered to defend against the charges leveled by the SEC vigorously.
Bittrex Shuts Down Confirms Worst Consequences of SEC’s Enforcements
Executives from the affected crypto companies have argued that the current securities laws are incompatible with cryptocurrency, labeling the SEC’s sanctions overly aggressive and extortion.
SEC has, in its annual report conveyed last week, hailed 2023 as a fruitful period. It cited enforcement actions undertaken against Binance, Coinbase, and FTX former chief Sam Bankman-Fried, illustrating its devotion to weed out crypto-related fraud and illegal exchanges from the US.
In contrast, the crypto industry pushes back against SEC’s sanctions, terming them decelerating progress in the digital asset sector. The argument by the crypto community is proving logical as the ultimate consequence is inevitable wind-down, such as one announced by Bittrex Global.
Meanwhile, the Monday, November 20 announcement by Bittrex Global indicates discontinuing the referral program and shutting down all promotional activity. Nonetheless, the company assured it would support the clients during the wind-down process with the team available to address users’ concerns.
Editorial credit: ioda / Shutterstock.com
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