Bittrex Bites the Dust in the US: Bittrex Global CEO Talks SEC Actions at Consensus 2023

"Bittrex Global Denies Communication with SEC Prior to Wells Notice, Faces Charges for Unregistered Operation"

At the Consensus 2023 conference held in Austin, Texas on April 28, Bittrex Global CEO Tom Albright and General Counsel Kiran Raj were in attendance. During the conference, Cointelegraph had the opportunity to speak with Bittrex Global’s Chief Compliance and Ethics Officer, John Rothwell.

Rothwell revealed that there had been no communication between Bittrex Global and the SEC prior to the financial regulator issuing a Wells notice to the company’s U.S. counterpart in March. The SEC had charged Bittrex in April for operating as an unregistered exchange, broker, and clearing agency. Additionally, it charged Bittrex Global “in connection with its operation of a single shared order book along with Bittrex.”

Bittrex Global has since filed a motion to dismiss the SEC’s charges, stating that the regulator has failed to provide clear guidance on what constitutes an “exchange” or “broker” in the digital asset space. The motion also argues that the SEC’s charges are based on an outdated regulatory framework that does not reflect the current state of the industry.

Rothwell emphasized the importance of regulatory clarity in the digital asset space, stating that it is crucial for companies to know what is expected of them in order to comply with regulations. He also noted that Bittrex Global has been proactive in its compliance efforts, including obtaining licenses in various jurisdictions and implementing robust anti-money laundering and know-your-customer procedures.

In response to the SEC’s charges, Bittrex Global has temporarily suspended trading for U.S. customers. The company has also implemented a number of changes to its platform, including the removal of certain digital assets and the introduction of trading pairs denominated in euros and Swiss francs.

Despite the regulatory challenges facing the industry, Rothwell remains optimistic about the future of digital assets. He believes that the technology has the potential to revolutionize the financial industry and that regulatory clarity will ultimately benefit both companies and consumers.

Overall, the case of Bittrex Global highlights the need for clear and consistent regulation in the digital asset space. As the industry continues to evolve, it is crucial for regulators and companies alike to work together to create a framework that promotes innovation while also protecting consumers.

Martin Reid

Martin Reid

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