In recent news, the Securities and Exchange Commission (SEC) has filed four charges of Exchange Act violations against Bittrex Global, as well as its CEO, Bill Shihara. The charges have been brought before the U.S. District Court Western District of Washington.
The charges against Bittrex Global are “in connection with its operation of a single shared order book along with Bittrex.” This is a significant development in the cryptocurrency industry, as Bittrex Global is one of the largest cryptocurrency exchanges in the world. The SEC’s actions have raised concerns about the legality of cryptocurrency exchanges and their operations.
The SEC has accused Bittrex Global of violating the Securities Exchange Act of 1934. The charges include failure to register as a national securities exchange, failure to register as a broker-dealer, failure to have adequate anti-money laundering (AML) procedures in place, and failure to have adequate customer identification procedures in place. The SEC has also accused Shihara of aiding and abetting Bittrex Global’s violations.
The charges against Bittrex Global and Shihara highlight the need for regulatory oversight in the cryptocurrency industry. Many cryptocurrency exchanges operate in a legal gray area, and this lack of regulation has led to concerns about fraud and market manipulation. The SEC’s actions against Bittrex Global may serve as a warning to other cryptocurrency exchanges that they must comply with federal securities laws or face legal consequences.
Bittrex Global has responded to the charges, stating that it “disagrees with the SEC’s action and believes it is unwarranted and misguided.” The company has also stated that it has “worked diligently to comply with all applicable laws and regulations.” Bittrex Global has vowed to fight the charges and defend its reputation.
The charges against Bittrex Global and Shihara come at a time when the cryptocurrency industry is facing increased scrutiny from regulators. The SEC has been particularly active in investigating and prosecuting cryptocurrency-related fraud and misconduct. In recent years, the SEC has brought charges against several high-profile cryptocurrency companies, including Ripple Labs and Telegram.
The SEC’s actions against Bittrex Global and Shihara are a reminder that the cryptocurrency industry is not immune to regulation. As the industry continues to grow and mature, it is likely that we will see increased regulatory oversight and enforcement. Cryptocurrency companies that fail to comply with federal securities laws may face significant legal and financial consequences.