Bittrex Exits U.S. Market Amid Regulatory Issues

Crypto exchange Bittrex exits U.S. due to regulatory challenges. The Co-Founder and CEO, Richie Lai wrote on Twitter that the move does not impact Bittrex Global, which will continue operations as normal for its customers outside the U.S.

Lai wrote that: “Today is a bittersweet day. This month we turned nine years old; and while I am excited and proud that we’ve come this far, I am also very sad. Today, Bittrex is beginning the process of winding down its U.S. operations. Don’t worry – all customer funds are safe and available to withdraw; however, it’s just not economically viable for us to continue to operate in the current U.S. regulatory and economic environment."

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

— Richie Lai (@richiela) March 31, 2023

Lai elaborated that: "Regulatory requirements are often unclear and enforced without appropriate discussion or input, resulting in an uneven competitive landscape. In the end, we made great strides toward accomplishing our goal of maturing the crypto space. However, operating in the U.S. is no longer feasible and Bill, Rami and I will focus on helping Bittrex Global succeed outside the U.S. As I mentioned above, all customer funds are safe, here and ready for your retrieval (for users with KYC requirements met). We will permit trading until April 14, 2023, and you should withdraw all your funds by April 30, 2023."

In 2020 the exchange terminated its services for users based in seven countries, the most notable ones being Belarus and Ukraine. The other five countries are Burundi, Mali, Myanmar, Nicaragua, and Panama. “For regulatory reasons, we, unfortunately, have to inform you that we are no longer able to provide services to customers who are residents of certain jurisdictions,” the exchange stated in a notification sent to its customers.

Though Bittrex highlighted that its services will be halted for the mentioned countries within the next fourteen days, for some customers it took an immediate effect. Additionally, it detailed that all fiat deposits have been terminated and asked clients to withdraw funds within the next fourteen days. “After that time, we will need to disable any remaining accounts,” the exchange added, so it is not clear if the customers will be allowed to withdraw their holdings after the deadline.