Oliver Linch, CEO of Bittrex Global, noted that market participants are increasingly wary of the United States due to regulatory uncertainty surrounding the crypto industry in the country, according to an Aug. 16 statement shared with CryptoSlate.
Bittrex is staying away from US users
Linch stated that his exchange has made significant investments to ensure it does not accept US clients due to regulations.
Since the beginning of the year, US financial regulators have tightened their oversight of the crypto industry, with the SEC and CFTC taking legal action against several crypto-related companies for violations of federal law.
The financial watchdogs have taken legal action against several crypto-related companies for violations of federal laws. At the same time, a jurisdictional dispute is brewing between the two agencies, further complicating the oversight of this fast-growing sector.
These uncertainties have led to increased calls for the US Congress to introduce legislation that adequately addresses the regulatory vacuum in the industry. However, SEC Chairman Gary Gensler has maintained that current laws adequately regulate space.
To sidestep 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 asset exchange to consider his company.
On Bittrex, SEC case
Bittrex’s U.S. subsidiary filed for bankruptcy in May after the SEC alleged that the crypto exchange operated, among other things, as an unregistered national stock exchange, broker and settlement agency.
Last week, the SEC reached a $24 million settlement with Bittrex and its former CEO, William Shihara. The exchange has neither admitted nor denied any of the SEC’s allegations against it.
CEO Linch expressed satisfaction with the company’s prompt settlement with the SEC. He said the swift closure of the case would give the company a chance to build a future “as a regulated, mature and sophisticated part of the wider financial ecosystem.”
Meanwhile, the press statement clarified that the bankrupt US subsidiary paid the settlement, not its international arm, Bittrex Global.
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