Liechtenstein-based cryptocurrency exchange Bittrex Global has announced its decision to shut down operations by December 4, marking the end of its trading activities following a sequence of regulatory hurdles.
Regulatory Battles Lead To Closure Of Bittrex Global
The closure announcement comes after a string of regulatory challenges that have plagued the exchange. Bittrex Global faced significant setbacks earlier this year, resulting in the closure of its U.S. operations in March.
The decision to close its American exchange was primarily due to economic impracticality following a lawsuit and a subsequent $29 million settlement with the U.S. Securities and Exchange Commission (SEC). This move, which stemmed from alleged violations of securities laws, severely impacted the exchange’s viability.
In an official tweet today, the company expressed deep regret over its decision to wind down operations. The exchange clarified that post-December 4, customers would only be allowed to withdraw assets as part of the cessation process. Urging customers to promptly log into their accounts and withdraw their assets, the exchange aimed to facilitate the withdrawal process.
Regulatory Ambiguity And Competitive Challenges
Earlier statements by Bittrex’s co-founder and CEO, Richie Lai, highlighted the challenges faced by the company amidst the evolving regulatory landscape. Lai voiced concerns about the uncertainty and unilateral enforcement of regulatory requirements, which created an imbalanced competitive environment within the crypto space. These sentiments were initially expressed during the closure of U.S. operations and are echoed in the decision to halt global trading activities.
Impact And Supportive Measures
Bittrex Global’s closure comes when it ranked among the top 100 cryptocurrency exchanges globally, as per CoinGecko’s data, with a relatively modest 24-hour trading volume of nearly $6 million. For comparison, industry giants like Coinbase recorded a staggering $1.8 billion in daily trading volume, while Binance, the largest exchange by volume, marked just over $7 billion.
As part of the winding-down process, the exchange terminated its referral program and all promotional activities. Despite the cessation, Bittrex Global assured customers of ongoing support, pledging to assist users with any queries or concerns they might have during the process.
- Regulatory Hurdles: The closure comes after the exchange faced regulatory challenges, leading to the shutdown of its U.S. operations due to an SEC lawsuit.
- Support and Wind-Down Process: Bittrex Global promises to assist customers throughout the winding-down phase, enabling asset withdrawals and providing support for any user concerns.