Bittrex Crypto Exchange to End U.S. Services Following Court Approval
Bittrex, one of the largest cryptocurrency exchanges in the U.S., has received court approval to withdraw its business operations from the states where it previously operated. The approval was granted by Judge Brendan Shannon of the Delaware Bankruptcy Court, who also approved Bittrex’s liquidation proposal. This decision comes after Bittrex announced its plan to withdraw from the U.S. market earlier this year due to regulatory and economic challenges.
Delaware Court Approves Bittrex Liquidation Plan
Bittrex Global, however, will continue to operate normally despite the shutdown in the U.S. The exchange faced increasing scrutiny from the Securities and Exchange Commission (SEC) for allegedly operating an unregistered securities exchange. Bittrex decided to settle with the SEC for $24 million without admitting or denying the allegations. The cryptocurrency exchange has over 100,000 creditors and estimated debts and assets ranging from $500 million to $1 billion.
More Crypto Exchanges May Leave The U.S.
The lack of regulatory clarity and ongoing pressure from regulators have led many crypto exchanges to consider leaving the U.S. Coinbase CEO Brian Armstrong has expressed concerns about the regulatory environment and stated that the company may leave if there is no improvement in regulatory clarity. Gemini CEO Tyler Winklevoss also mentioned exploring other jurisdictions if the U.S. regulatory environment becomes too hostile.
Hot Take: Decreased Competition and Limited Options for U.S. Investors
Bittrex’s departure from the U.S. market may result in decreased competition among cryptocurrency exchanges in the country. While this could benefit existing exchanges, it may make it more challenging for U.S. investors to access trusted options for trading cryptocurrencies. If other major exchanges follow suit, U.S. investors could be left with limited choices for their cryptocurrency investments.
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