Bittrex CEO Oliver Linch noted that market participants are increasingly wary of the United States because of the regulatory uncertainty surrounding the crypto industry in the country, according to an Aug. 16 statement shared with CryptoSlate.
Bittrex steers clear of US users
Linch stated that his exchange made substantial investments to ensure it does not accept U.S. customers because of the regulatory environment.
Since the beginning of the year, U.S. financial regulators have increased their scrutiny of the crypto industry, with the SEC and CFTC filing legal actions against several crypto-related firms for federal law violations.
The financial watchdogs have filed legal actions against several crypto-related firms over violations of federal laws. Concurrently, a jurisdictional dispute is brewing between the two agencies, further complicating the oversight of this burgeoning sector.
These uncertainties have led to increased calls for the U.S. Congress to introduce legislation that adequately addresses the regulatory vacuum in the industry. However, SEC chairman Gary Gensler has maintained that current laws adequately govern the space.
To circumvent the issues, the CEO revealed that Bittrex Global was regulated in two leading jurisdictions, Liechtenstein and Bermuda, and advised investors looking to do business with a non-U.S. regulated digital assets exchange to consider his firm.
On Bittrex, SEC case
Bittrex U.S. subsidiary filed for bankruptcy in May after the SEC alleged that the crypto exchange operated as an unregistered national securities exchange, broker, and clearing agency, among other allegations.
Last week, the SEC reached a $24 million settlement with Bittrex and its former CEO, William Shihara. The exchange did not admit nor deny any of the SEC’s allegations brought against it.
CEO Linch expressed satisfaction at the firm’s quick settlement with the SEC. He said the quick closure of the case would give the firm an opportunity to build a future “as a regulated, mature, and sophisticated part of the wider financial ecosystem.”
Meanwhile, Bittrex clarified that the settlement was paid by its bankrupt U.S. subsidiary, not its international arm, Bittrex Global.
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