Bittrex, the cryptocurrency exchange, has announced that it will be winding down its operations in the United States (US) due to the difficult regulatory and economic environment. This announcement coincided with the platform’s ninth anniversary, marking a bittersweet moment for the company.
Requirements enforced and increasingly unclear
This was confirmed via a Twitter message. Its co-founder and CEO, Richie Lai, has stated that the regulatory requirements became increasingly “unclear” and “enforced without appropriate discussion or input” as the crypto ecosystem evolved, creating an unlevel playing field.
Due to these circumstances, it is no longer economically viable for Bittrex to continue its operations in the US.
Be successful outside the US
The founders of the crypto company have now decided to shift their focus to supporting Bittrex Global to succeed outside the United States. Bittrex has confirmed that US customers need not worry about the safety of their funds as all their capital is safe and available for withdrawal.
The platform will continue to facilitate trading until April 14, 2023, but clients are advised to withdraw all their funds by April 30, 2023.
Founded in 2014 by 3 cybersecurity engineers, Bittrex offered services such as full service API, near instant atomic transactions, a wallet infrastructure and offline cold wallet solutions.
US appears to be tougher
Bittrex is certainly not the only crypto-related company experiencing problems in the US. Bittrex’s winding down of US operations is therefore a reminder of the challenges crypto companies face in an uncertain regulatory environment.
Ripple’s Brad Garlinghouse, among others, has previously indicated that the Securities and Exchange Commission’s regulatory approach in fact puts the US at “serious risk” of becoming an attractive hub for the next evolution of blockchain and crypto innovation.
For this reason, many companies have already moved to countries outside the US. This, in turn, could leave the US behind in crypto and crypto regulation. It is not yet known what exactly the next step of the US will be in this area.