US SEC investigates crypto exchange Bittrex for potential regulatory violation: WSJ
The US Securities and Exchange Commission (SEC) is reportedly investigating cryptocurrency exchange Bittrex over potential regulatory violations, according to a report by The Wall Street Journal. This comes as Bittrex prepares to shut its U.S operations.
See related article: U.S.-based cryptocurrency exchange Bittrex lays off 83 employees
- Seattle-based Bittrex, which previously said it would wind down its U.S. operations from April 30, has not yet received any formal communication from the SEC regarding the investigation but the exchange claims to be cooperating with regulators.
- The SEC wrote that Bittrex had violated laws as an exchange, broker-dealer and clearinghouse without first registering with the regulator.
- The SEC has been stepping up its scrutiny of the crypto industry in recent years, and has taken enforcement action against a number of companies for violating securities laws.
- Bittrex has previously faced criticism over its compliance measures, including the delisting of certain tokens due to concerns over their legality.
- If found guilty of violating securities laws, Bittrex could face significant penalties, including fines and potentially even having its operations suspended.
- The news of the SEC investigation has caused concern among Bittrex users and the wider crypto community, with some worrying about the potential impact on the industry as a whole.
- This latest development is a reminder of the importance of regulatory compliance in the crypto space, and highlights the ongoing need for exchanges to ensure they are operating within the bounds of the law.
See related article: U.S. SEC committee urges ‘aggressive enforcement’ on crypto, says most tokens are securities
