Cryptocurrency Exchange Bittrex Global to Cease Operations from December 4 Amid Regulatory Challenges
Summary:
Cryptocurrency exchange Bittrex Global, based in Liechtenstein, intends to cease operations starting December 4. The decision follows a similar move by its US-based arm, Bittrex, earlier this year due to regulatory uncertainties. The platform has urged users to transfer their U.S. dollar balances to Euros or cryptocurrency prior to the halt to avoid withdrawal complications, and warned users against making further deposits. The closure comes after both Bittrex and Bittrex Global faced charges from the SEC.
The cryptocurrency exchange Bittrex Global, located in Liechtenstein, has disclosed its intent to terminate its operations, beginning with a halt to trading activities from December 4. According to a notice published on their website on November 20, users in possession of U.S. dollar balances are required to transfer their money to Euros or cryptocurrency before the stated date to avoid being prevented from asset withdrawal. On the announced date, the platform will put a pause on all trading activities while permitting certain withdrawals only. Bittrex Global stated that the determination to cease operations has been arrived at after careful thought, acknowledging the potential inconvenience it may cause its customers. They urged clients to refrain from making any deposits on their platform, warning that it cannot guarantee the safe reception of such funds. It also cautioned that any attempting transfer might result in the permanent loss of these funds.
The decision to cease operations by Bittrex Global was made public approximately nine months post the announcement of its American counterpart, Bittrex, of its plans to cease its activities in the United States effective from April 30. The reason cited for this action was the ongoing ambiguity surrounding regulatory compliance. In April, Bittrex was charged by the U.S. Securities and Exchange Commission (SEC) for functioning without proper registration as an exchange, a broker, and a clearing agency. In May, Bittrex had sought the protection of Chapter 11 under U.S. bankruptcy laws and settled its case with the SEC in August, agreeing to a penalty and interest payment summing to $24 million. Having secured approval in a Delaware bankruptcy court, the platform resumed permitting withdrawals for customers. The SEC had likewise charged Bittrex Global in April concerning its operation of a shared single order book with Bittrex. If this regulatory action had any impact on Bittrex Global's resolution to terminate its operations remains uncertain.
Published At
11/20/2023 8:24:12 PM
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