In accordance with a blog post from Bittrex, a cryptocurrency exchange has started to wind down its US operations. The exchange attributed its choice to the nation’s unclear regulatory framework and poor economic conditions.
The statement came on the platform’s ninth anniversary, which marked a sad time for the organization. Bittrex, which was established in 2014 by three cybersecurity engineers, provided services such a full-service API, very fast atomic trades, wallet infrastructure, and offline cold wallet options.
Bittrex Leaving US Over Regulatory Concerns
Richie Lai, co-founder and CEO, said that the exchange could not sustain operations given the existing regulatory environment. According to Lai:
“Nine years later, the crypto ecosystem is very different. Regulatory requirements are often unclear and enforced without appropriate discussion or input, resulting in an uneven competitive landscape.”
Bittrex has reassured its customers that their money is secure. Clients must prepare their bank accounts for wire transactions by April 7th.
On April 14, 2023, buying and selling on the system will come to an end. A withdrawal deadline of April 29, 2023 has been set for all US clients as on the following day, the activities in the United States will cease.
There has been considerable animosity as a result of the recent crises in the U.S. banking industry, as well as increased regulatory scrutiny and uncertainty surrounding crypto companies in the area. Recently, BUSD deposits and withdrawals via OCBS were suspended by Binance.US, the company’s US subsidiary.
According to Garlinghouse in a Bloomberg interview, the U.S.’s regulation of the cryptocurrency market is “behind” that of countries like Australia, Japan, the United Kingdom, Singapore, and Switzerland, and as a result, the crypto business has “already started moving outside” of the country.
Meanwhile, Danny Talwar, Head of Tax at Koinly, a tax solution for cryptocurrency, believes that the current de-banking exercise taking place among crypto-related financial institutions across the country may have negative consequences.