The Bittrex cryptocurrency exchange has received a Wells Notice from the US Securities and Exchange Commission (SEC), claiming it has not registered as a clearinghouse, broker-dealer, or exchange.
The crypto community is distressed as the SEC approaches Bittrex, one of the United States’ “winding up” digital exchanges. According to the Wall Street Journal, Bittrex has shut down its operations after the SEC charged the exchange with breaking investor protection rules. The action comes after the agency scrutinizes other exchanges such as Coinbase and Kraken.
In 2017, the SEC launched an investigation to understand more about Bittrex’s business model and asset selection procedure. The SEC has subpoenaed the company.
The SEC’s lawyers have now released a Wells Notice alleging that Bittrex operated as an unregistered exchange, broker-dealer, and clearinghouse. The lawyers claimed that Bittrex had violated the laws requiring those who offer securities to register with the SEC and abide by the regulations. The regulations protect investors’ funds and disclose costs and risks.
Bittrex is ceasing US operations by the end of April
According to Bloomberg, Bittrex has decided to wind up its operations in the United States by April 30. This is due to ongoing regulatory uncertainties. Bittrex is the most recent company to leave the nation.
The SEC’s move has led Bittrex to cease operations in the US market, which may have significant ramifications for both the exchange’s users and the larger cryptocurrency market. The action underlines the industry’s continued struggles as it navigates a constantly changing regulatory environment while retaining.
In addition, the SEC’s attack on Bittrex ought to serve as a warning to the whole cryptocurrency industry.