Bittrex has decided to cease its global operations due to strong regulatory pressure. Customers are prompted to withdraw their funds as quickly as possible.
Bittrex Global, a UK-based cryptocurrency exchange, has announced that it will shut down all trading activities globally from December 4th. After the applicable effective date, Customer may withdraw assets only as part of the curtailment process.
“Starting Monday, December 4, 2023, all trading activity on Bittrex Global will cease. After December 4th, only cancellation is possible. Please log in and withdraw all assets.” According to a new update from Bittrex Global.
Another person bites the dust
Following the shutdown, Bittrex immediately discontinued its referral program and promotions. The company did not specify a deadline for asset withdrawal, but encouraged users to withdraw their assets as soon as possible as the liquidator may set a withdrawal deadline in the future.
The company noted that all customer funds are safe and withdrawable. Bittrex also warned that customers should avoid making deposits on the platform as it could lead to permanent losses. Additionally, users holding USD must convert their USD holdings to EUR or cryptocurrency before withdrawing USD.
Bittrex Global announced on October 30 that it would close its U.S. operations after receiving court approval. However, this was not a voluntary measure. In early March, the exchange revealed plans to withdraw from the powerful market, citing ongoing regulatory issues.
Last year, the U.S. Treasury held Bittrex accountable for violating sanctions and anti-money laundering (AML) laws. As a result, the company paid significant administrative fines amounting to $29 million.
In May 2023, Bittrex was sued by the U.S. Securities and Exchange Commission (SEC). The exchange immediately agreed to pay $24 million to settle the case.
Kraken, another major cryptocurrency exchange, is facing difficulties in the US legal environment. The exchange has been the subject of regulatory investigation and legal action by the U.S. SEC.
Previously, the SEC charged Kraken with offering unregistered securities in the form of a staking service that allowed users to receive rewards for holding certain cryptocurrencies. Kraken settled the charges by agreeing to pay a $30 million fine and stop providing staking services to U.S. residents.
In a surprising turn of events, the SEC renewed its legal battle with Kraken on November 20, filing a new lawsuit alleging unregistered securities offerings and commingling of customer and corporate funds. Unlike existing conciliatory approaches,
This time, Kraken chose to strike back, strongly denying the SEC’s accusations and noting the lack of supporting evidence.
Transformation of the cryptocurrency exchange environment
Bittrex’s announcement comes in light of the landmark settlement Binance reached with the U.S. Department of Justice. As part of the plea deal, Binance founder Changpeng Zhao (CZ) will resign as CEO of the company and can no longer serve on its board of directors.
With CZ resigning, Richard Teng becomes the new CEO of Binance. Many believe that this change in leadership could actually lead to Binance’s transition to full compliance. On the other hand, there may be other exchanges that offer more and don’t have to comply with regulations.
Binance’s new CEO has a strong background in regulatory compliance, having previously served as CEO of the Financial Services Regulator of Abu Dhabi Global Markets and Chief Regulatory Officer of the Singapore Exchange.
In the coming months, we are likely to see the cryptocurrency exchange market consolidate as smaller exchanges struggle to compete with larger, more compliant players. We may also see a shift toward more regulation in the industry as governments around the world work to protect investors and prevent money laundering.