Bittrex Bids Farewell to US Crypto Market Amid Regulatory Pressure

Bittrex, one of the oldest and most popular cryptocurrency exchanges in the US, has announced that it plans to shut down its US operations by April 30, 2023, citing “continued regulatory uncertainty” as the main reason for its decision.

The exchange, which was founded ten years ago by three former Amazon employees, has been facing increasing scrutiny from US regulators over its compliance with anti-money laundering and sanctions rules.

In October 2022, Bittrex was slammed with a fine of $53 million by the Treasury’s Office of Foreign Assets Control and Financial Crime Enforcement Network for failing to prevent customers in Iran, Cuba, and other sanctioned nations from using its platform. In 2019, Bittrex was also denied a license to operate in New York by the state’s Department of Financial Services, which raised concerns over its ability to detect money laundering and comply with sanctions.

In a tweet, last Friday, Bittrex co-founder and US Chief Executive Officer Richie Lai said it’s “not economically viable for us to continue to operate in the current US regulatory and economic environment.” He added that Bittrex has “never lost funds or been hacked” and that all customer funds are safe and can be fully withdrawn immediately.

Thank you everyone…. <3 ;( pic.twitter.com/kq8nTRT0Aj

— Richie Lai (@richiela) March 31, 2023

Bittrex also published an announcement on its website, providing a timeline for customers to withdraw their funds and cease trading activities. Users have until April 7, 2023, to set up bank accounts for wire transfers, and trading will come to a halt on April 14, 2023. The fiat wire withdrawal and ACH withdrawal deadlines are April 24 and April 27, 2023, respectively. April 29, 2023, will be the last full day for users to withdraw their cryptocurrency.

The exchange recommends that users withdraw their funds as soon as possible to avoid potential delays. That said, those who fail to withdraw their funds by the deadline may face account disablement, and any remaining funds could become unavailable for an extended period.

Meanwhile, Bittrex’s decision to exit the US market does not affect its international arm, Bittrex Global, which is based in Liechtenstein and caters to non-US customers.

Bittrex Becomes Latest Victim of US Regulatory Pressure

Bittrex is the latest crypto firm to leave the US amid heightened regulatory pressure over the industry. Several other exchanges, including Bitfinex, Poloniex, and Binance, have also had to limit or cease their operations in the US due to regulatory challenges. The US Securities and Exchange Commission (SEC) has brought a flurry of enforcement actions this year against crypto firms, including Coinbase Global Inc., Gemini Trust Co., Kraken, and Nexo Inc.