Bittrex, a United States-based cryptocurrency exchange, is allegedly facing prospective action from the U.S. securities regulator even with its preparation to shut down local operations after the SEC’s enforcement unit informed it about the same in March 2023.
As per the report by wall street journal on April 16 2023 , Bittrex was recommended to be charged for apparent violations related to investor protection by enforcement division of United states securities and exchange commission (SEC).
As reported by Bittrex General Counsel David Maria,The Seattle-based crypto firm had already started the process of winding down its U.S. operations, after it was instructed by the enforcement unit in March about SEC’s potential action.
As per the Wells notice i.e notice of potential enforcement action, the seattle based Bittrex had violated laws by doing business as an exchange, broker-dealer and clearinghouse without registering with the regulator.
According to Bittrex’s general counsel, in late 2022 the company discussed with the SEC how to register its operations. However, it found that there was no chance to follow the rules of the SEC without essentially winding up all of its revenue-producing activities in the country.
Attorney Maria stated that :
The lack of regulatory clarity here results in substantial costs and no certainty as to what can and can’t be offered.
This reveals that Bittrex’s inability to comply with the SEC rules was due to the agency not providing clear regulations for crypto in the first place.