Despite plans to cease local operations, the American securities regulator may take action against the cryptocurrency exchange Bittrex, which is based in the United States.
The Securities and Exchange Commission May Take Action Against US Crypto Exchange Bittrex, according to a Report
According to a Wall Street Journal article published on April 16, the enforcement section of the U.S. Securities and Exchange Commission (SEC) is leaning toward recommending that the organization sue Bittrex for suspected investor protection violations.
According to the exchange corporate counsel David Maria, the enforcement unit warned Bittrex about probable SEC action in March. The Seattle-based cryptocurrency company had already begun the process of closing down its U.S. operations by that point, the lawyer claimed.
The SEC said that the exchange had broken the law by operating as an exchange, broker-dealer, and clearinghouse without registering with the regulator in the notice of potential enforcement action.
Statement by Lawyer Maria
The SEC and Bittrex discussed how to register their operations in late 2022, according to the exchange’s general counsel. The cryptocurrency company discovered that there was no way to abide by the SEC’s regulations without essentially ending all of its revenue-generating operations in the nation.
Attorney Maria emphasized that the lack of clear standards for cryptocurrencies from the SEC was the primary reason the exchange was unable to comply with the requirements.
“The lack of regulatory clarity here results in substantial costs and no certainty as to what can and can’t be offered.”
Attorney Maria
Since the firm is ceasing operations in the US, Maria said the exchange is unsure whether the SEC would bring a lawsuit. In the event that the government decides to act, Bittrex will go to court unless the regulators “came with a reasonable settlement offer,” according to the attorney.
Problems Exp erienced by the Exchange
The announcement by the exchange to cease all operations in the United States on March 31 was followed quickly by the news, which cited the difficult regulatory and economic environment. By April 30, 2023, the exchange said that US customers to withdraw their funds.
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