Bittrex to shut its U.S operations

[coupable]

On the shutdown of Bittrex in the US and SEC actions — Bittrex Global CEO at Consensus 2023
In the above article published by Cointelegraph today, the CEO of the Bittrex platform refuted all the accusations leveled by the SEC against it, including the charge of activity without a license, explaining that the SEC has not communicated with the platform since it launched its services in the United States and did not ask it to provide it with any information regarding the legal status of the platform or regarding the work system. And Oliver Linch mentioned that the platform decided to end its activity in the United States at the end of last April because of these traces that came to represent pressure to end the platform's activity in the United States.
Oliver Linch's statements to Cointelegraph come as confirmation of what the coinbase platform had mentioned about the SEC and that it did not contact it at any time and did not request an audit of any of the licenses or activities.

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[bbc.reporter]

@Abiky. Also, if CZ and Binance evade much of these regulations and to continue what they have been doing, it would also imply that the laws the regulators use have become limited in managing the cryptospace.

I shake my head because it was Bittrex that wanted to be regulatory compliant and they delisted much of the ICOs in the exchange on 2017. This caused Binance to become the exchange for maybe more than 80% of the market for ICO coins and tokens. However, what did it bring Bittrex for following the rules? Presently other exchanges are learning from CZ hehehe.

Regulations are there to protect investors against malpractices from crypto exchange companies. But too much regulations, will cause a mass exodus by said companies to other countries that are much more flexible. The US is trying to do the right thing by eliminating as much illegal activity as possible on the crypto industry. It's just that it's doing everything the wrong way. Congress needs to devise a proper regulatory framework to bring clarity to the crypto industry in the region. The first step would be to remove SEC chairman Gary Gensler from office. That would provide a sign of relief among crypto exchanges and investors alike.

I was surprised to have read about Bittrex leaving the US when it was always striving to comply with regulations. Maybe there's something else behind that made Bittrex take such a decision? Now Coinbase threatened to leave the US, so things will get interesting in the following months. Let's hope there's "light at the end of the tunnel" for the crypto industry to thrive within the US. Just my opinion

Protecting investors is only the reason being used to impose regulations and maybe in the beginning it might have been the real reason, however, the real rulers of any country who back politicians and put them in their positions in government are being used to create regulations to control different types of industries and maintain their dominance. This is why many people think regulators end in doing too much. The government does not work for you, it works for the real rulers.

Also, do you know who gives their banks a bailout during a crisis? It is you the tax payer hehehehe.

[Abiky]

Protecting investors is only the reason being used to impose regulations and maybe in the beginning it might have been the real reason, however, the real rulers of any country who back politicians and put them in their positions in government are being used to create regulations to control different types of industries and maintain their dominance. This is why many people think regulators end in doing too much. The government does not work for you, it works for the real rulers.

Also, do you know who gives their banks a bailout during a crisis? It is you the tax payer hehehehe.

Banks and governments always win. It's the taxpayers that always lose. You'd think governments will allow you to obtain true financial freedom with something that's outside of their reach? They will regulate crypto "down to the bone" until they diminish its dominance worldwide. Given that cryptocurrencies are decentralized by design, don't expect them to take over the traditional monetary system anytime soon.

Let's see how crypto regulations will play out in the US, especially when there's a lot of money involved in this industry. If the US goes too hard on crypto, it will miss a huge opportunity to collect taxes and gain a certain level of control over crypto transactions going through CEXs. Bittrex leaving the country may only be the "tip of the iceberg" as the worst is yet to come. The next exchange in line would be Coinbase. The exchange already threatened to leave the country if the government doesn't provide regulatory clarity. Pro-crypto US politicians better step up to the game, or you can say goodbye to the crypto industry in the US for good. Just my thoughts

[bbc.reporter]

@Abiky. What much of these cryptolovers who are arguing for regulations ignore is that regulations might threaten one of the basic innovations that the cryptospace has given us and this is the self custody of our digital wealth.

If regulations are imposed, this implies that all coins and tokens are securities and must be registered with the SEC. This will cause a few problems because under those regulations there should be a custodian, a transfer agent, it will need certain reports, disclosures and all these other documents required by the SEC.

These requirements will also make us pay more fees to the custodians and the transfer agents.

There is also the accredited investor rules which might exclude people who are under a certain salary bracket from investing freely in the cryptospace. This will not encourage the innovation in forming community shared projects similar to what we are witnessing today. It will be very much similar to nothing we presently have in the cryptospace.

CZ, we support your use of decentralization to evade everything that you need to evade hehehehehheee.

[Bitcoin_Arena]

I received this email from Bittrex after several years of not logging in and my account being blocked  



I wonder what kind of terms of service they have now updated, since I can read them as a result of the block on my account. Not that I miss the exchange anyway.

[Abiky]

@Abiky. What much of these cryptolovers who are arguing for regulations ignore is that regulations might threaten one of the basic innovations that the cryptospace has given us and this is the the self custody of our digital wealth.

If regulations are imposed, this implies that all coins and tokens are securities and must be registered with the SEC. This will cause a few problems because under those regulations there should be a custodian, a transfer agent, it will need certain reports, disclosures and all these other documents required by the SEC.

These requirements will also make us pay more fees to the custodians and the transfer agents.

There is also the accredited investor rules which might exclude people who are under a certain salary bracket from investing freely in the cryptospace. This will not encourage the innovation in forming community shared projects similar to what we are witnessing today. It will be very much similar to nothing we presently have in the cryptospace.

CZ, we support your use of decentralization to evade everything that you need to evade hehehehehheee.

Exactly. Fierce regulations will limit crypto's true potential to bring "banking to the unbanked". There will be so many restrictions in place that would make an ordinary person think twice before getting into the revolution. I believe the US government is doing this intentionally to scare away as much people from crypto/Blockchain tech as possible. After all, it doesn't want the US Dollar from losing ground anytime soon. While I believe decentralization will ultimately prevail, governments will not give up without a "good fight".

Like I've said before, crypto exchanges will ultimately leave the US due to the SEC's "aggressive behavior". Binance might survive because it has its own "decentralized" Blockchain network, but I cannot say the same about Coinbase and the others. Competing exchanges may deal with customers internationally, but without a decentralized chain of their own, they can be easily "cut off" from the system by mainstream governments. If all centralized exchanges die in the long run, then we'll be back to "square one". Just my opinion

[Bitcoin_Arena]

I'm wondering what does this mean for the users and their funds?

So the once famous Bittrex got Bittrekt?

I guess the customers or users will have to wait for several months or years before they can get their back funds if things work out according to plan.

This is a little light on the bankruptcy filings they made;

1.  Chapter 9

The purpose of chapter 9 is to provide a financially-distressed municipality protection from its creditors while it develops and negotiates a plan for adjusting its debts. Reorganization of the debts of a municipality is typically accomplished either by extending debt maturities, reducing the amount of principal or interest, or refinancing the debt by obtaining a new loan

2. Chapter 11

Chapter 11 is named after a section of the U.S. Bankruptcy Code. Companies that file Chapter 11 do so in order to obtain time to restructure their debts and make a fresh start. The terms are subject to the debtor fulfilling its obligations under the plan of reorganization.
1

During a Chapter 11 proceeding, the court will help a business restructure its debts and obligations

3. Chapter 15

Chapter 15 is a section in the U.S. Bankruptcy Code that was added in 2005 to provide for cooperation between U.S. courts and foreign courts when foreign bankruptcy proceedings touch upon U.S. financial interests.

The section was added in response to a United Nations recommendation for cooperation among nations on what it calls "cross-border insolvency."

[bbc.reporter]

@Abiky. Have you read this news article? Uncle Gary and the SEC are already starting to open discussions on an implementation of a rule that only approved custodians are allowed to hold your cryptocoins and tokens. This will disable not your keys, not your coins and expect holders to give all trust to their approved custodians.



The U.S. Securities and Exchange Commission (SEC) went too far when it proposed a new rule demanding investment firms safeguard all of their clients’ assets – including crypto – with approved custodians, according to an array of critics not often in alignment.

Source https://www.coindesk.com/policy/2023/05/09/sec-blasted-on-custody-proposal-by-jpmorgan-crypto-firms-and-a-fellow-agency/

[Abiky]

@Abiky. Have you read this news article? Uncle Gary and the SEC are already starting to open discussions on an implementation of a rule that only approved custodians are allowed to hold your cryptocoins and tokens. This will disable not your keys, not your coins and expect holders to give all trust to their approved custodians.



The U.S. Securities and Exchange Commission (SEC) went too far when it proposed a new rule demanding investment firms safeguard all of their clients’ assets – including crypto – with approved custodians, according to an array of critics not often in alignment.

Source https://www.coindesk.com/policy/2023/05/09/sec-blasted-on-custody-proposal-by-jpmorgan-crypto-firms-and-a-fellow-agency/

That's very bad. If the SEC achieves this, crypto would become no different than traditional stocks. After all, one of the main advantages of crypto is financial sovereignity and personal freedom. By leaving crypto funds to an "approved custodian", we're introducing the middleman into the crypto/Blockchain space. Of course, crypto will still be decentralized. But most on/off ramps are controlled by centralized exchanges, so people won't have a way to buy/sell crypto without dealing with the "middleman issue".

I'm hoping Congress makes a vote to remove Gary Gensler from office. It'll be good for the US-based crypto industry in the long run. Otherwise, this would be the end of crypto in America as we know it. If things go south, I believe US-based crypto customers will move to other countries with a friendly stance towards the industry. This means more taxes for foreign countries and a huge loss for the United States in the future. Just my opinion

[bbc.reporter]

@Abiky. The approved custodian rule will kill the innovation of real ownership that it brings in web3. Will the NFTs that represent your character in a game also needed to be held with an approved custodian? Character skins in web3 are also NFTs hehe, they also need everyone to register them with the SEC?

The speed of the cryptospace's development has placed the SEC in a head shaking environment hehehe. Those who can evade compliance because uncle Gary is using old rules will certainly use every chance to evade hehehehe.

[Abiky]

@Abiky. The approved custodian rule will kill the innovation of real ownership that it brings in web3. Will the NFTs that represent your character in a game also needed to be held with an approved custodian? Character skins in web3 are also NFTs hehe, they also need everyone to register them with the SEC?

The speed of the cryptospace's development has placed the SEC in a head shaking environment hehehe. Those who can evade compliance because uncle Gary is using old rules will certainly use every chance to evade hehehehe.

Of course people will evade. And there's nothing the SEC can do about it. Crypto/Blockchain tech is decentralized after all. This "approved custodian" rule will only make crypto more centralized. It will force people to use P2P exchanges or trade crypto in-person in the long run. That means less tax income for the US. Not only that, but tightening regulations will force centralized exchanges to move elsewhere.

Bittrex left the country, and Coinbase is coming up next. And God knows if Binance will also do the same soon. US customers will be left with Kraken and some other small crypto exchanges in the timebeing. But if Gary Gensler maintains his aggressive stance against crypto, there will be no exchanges left in the country.

I hope this would be over by 2025 after the new government is sworn in. That is if Republicans win the race. Otherwise, you can say bye-bye to crypto in the US for good. Maybe this is an opportunity for the EU to rise as the leading superpower for crypto/Blockchain tech development and innovation? Just my thoughts

[stompix]

That's very bad. If the SEC achieves this, crypto would become no different than traditional stocks. After all, one of the main advantages of crypto is financial sovereignity and personal freedom. By leaving crypto funds to an "approved custodian", we're introducing the middleman into the crypto/Blockchain space. Of course, crypto will still be decentralized. But most on/off ramps are controlled by centralized exchanges, so people won't have a way to buy/sell crypto without dealing with the "middleman issue".

Have you actually read what this is about?
What freedom and sovereignty are you talking about when this is clearly about

The U.S. Securities and Exchange Commission (SEC) went too far when it proposed a new rule demanding investment firms safeguard all of their clients’ assets – including crypto – with approved custodians, according to an array of critics not often in alignment.

crypto assets you have deposited on a 3rd party like an exchange?
You already introduced this middleman when you deposited the coins, this will guarantee you that another 3AC or FTX won't happen, it's not like they are demanding to put your personal assets with a custodian. They are requiring businesses that operate with a crypto currency to use one to safe guard user deposits.

I'm hoping Congress makes a vote to remove Gary Gensler from office.

Why? Because half of the world can't read 3 words into a headline?

SEC Chair Gary Gensler, who said the rule “would help ensure that advisers don’t inappropriately use, lose, or abuse investors’ assets,” was quick to point out the crypto platforms that now maintain custody of investors’ assets don’t fit in.

Completely outrageous! Such a disgrace! Incomprehensible!  /s

@Abiky. The approved custodian rule will kill the innovation of real ownership that it brings in web3.

How?

[DaveF]

@Abiky. The approved custodian rule will kill the innovation of real ownership that it brings in web3. Will the NFTs that represent your character in a game also needed to be held with an approved custodian? Character skins in web3 are also NFTs hehe, they also need everyone to register them with the SEC?

The speed of the cryptospace's development has placed the SEC in a head shaking environment hehehe. Those who can evade compliance because uncle Gary is using old rules will certainly use every chance to evade hehehehe.

Of course people will evade. And there's nothing the SEC can do about it. Crypto/Blockchain tech is decentralized after all. This "approved custodian" rule will only make crypto more centralized. It will force people to use P2P exchanges or trade crypto in-person in the long run. That means less tax income for the US. Not only that, but tightening regulations will force centralized exchanges to move elsewhere.

Bittrex left the country, and Coinbase is coming up next. And God knows if Binance will also do the same soon. US customers will be left with Kraken and some other small crypto exchanges in the timebeing. But if Gary Gensler maintains his aggressive stance against crypto, there will be no exchanges left in the country.

I hope this would be over by 2025 after the new government is sworn in. That is if Republicans win the race. Otherwise, you can say bye-bye to crypto in the US for good. Maybe this is an opportunity for the EU to rise as the leading superpower for crypto/Blockchain tech development and innovation? Just my thoughts

The only exchanges left will be the ones that play by the rules.
Quoting myself:

If every time somebody wants to look at your finances, and you run, 99% of the time it's one of two things.

1) You are cooking the books
2) There are no books

The last small 1% is that even if things are 'legit' so many things done in a non GAAP way that it's never going to look legit....

If you are afraid as a business of having an independent person come in and make sure that you as a business are doing what you say you are doing and have what you say you have then you are probably not legit.
Any business in the finance world has had to deal with that.

When the rules get loosened is when you have problems because that's when they see what they can get away with.

And...wait for it....you know what I am going to say now.....
Don't put funds in centralized exchanges...Not Your Keys Not Your Coins.


-Dave

[bbc.reporter]

@Abiky. The approved custodian rule will kill the innovation of real ownership that it brings in web3.

How?

I have already mentioned it in this post.

https://bitcointalk.org/index.php?topic=5447061.msg62196665#msg62196665

This is only my own speculation, however, the reason why I speculated this is from how we have witnessed the SEC regulates traditional securities. Everything uncle Gary is trying to impose on crypto are based on regulations which might be obsolete.

In any case, I agree that this is only my own assumption. However, if it is the right assumption, does it not kill innovation?

[stompix]

How?

I have already mentioned it in this post.

https://bitcointalk.org/index.php?topic=5447061.msg62196665#msg62196665

This is only my own speculation, however, the reason why I speculated this is from how we have witnessed the SEC regulates traditional securities. Everything uncle Gary is trying to impose on crypto are based on regulations which might be obsolete.

In any case, I agree that this is only my own assumption. However, if it is the right assumption, does it not kill innovation?

Again, what innovation?
You could have given a real example where a company forced to take care of customers money can't innovate anymore cause for sure I haven't heard of one in my whole life.

Every single time that we have things that regulate financial companies and customer care there is this thing how this is bad for crypto for some reason when the whole thing shouldn't have existed in the first place, the whole deal of not your keys not your coins.

All the complains essentially boil down to one thing, people will not be able to invest in crypto freely because of a fee and somehow this will kill...omg!
How easy is for a guy in Kiawabuga to buy Tesla or Tsmc shares? Did it kill innovation?
Did any of those Icos that burned billion had any real life real product proven innovation?

How can normal companies invent millions of things and suddenly because crypto companies are required to deposit safely customers funds they are getting lobotomized.
Common, this is just bs and propaganda from exchanges that, like davef said, have no books and have no idea where customers money really is.

[bbc.reporter]

How?

I have already mentioned it in this post.

https://bitcointalk.org/index.php?topic=5447061.msg62196665#msg62196665

This is only my own speculation, however, the reason why I speculated this is from how we have witnessed the SEC regulates traditional securities. Everything uncle Gary is trying to impose on crypto are based on regulations which might be obsolete.

In any case, I agree that this is only my own assumption. However, if it is the right assumption, does it not kill innovation?

Again, what innovation?

When you buy a physical item and hold it, then you own it and you can do anything you want with it. This is real ownership. In the cryptospace, real ownership is real custody over your digital assets only made possible through the innovation that these decentalized ledgers and databases are giving us.

The government wants to kill this innovation by imposing old regulations where we are required to use government approved custodians to hold our assets for us and use government approved transfer agents to move our assets through them. This will of course be under government supervision to protect us hehehehehe.

Also, if cryptospace innovation is being killed, the developers will move out.

[stompix]

The government wants to kill this innovation by imposing old regulations where we are required to use government approved custodians to hold our assets for us and use government approved transfer agents to move our assets through them.

Bullshit!
The laws are strictly considering only financial institutions that are offering financial services to customers, it's nothing about how you decide to store or hide or safekeeping your coins.
Besides, look in what rabbit hole you've dug yourself, by claiming the government can impose this you've essentially said that any government can control Bitcoin and can decide what you're going to do with your coins, so at this point what is the point of all of this in the first place?

Also, if cryptospace innovation is being killed, the developers will move out.

You still haven't been able to give one single example of an innovation that is going to be killed by these laws.

In the cryptospace, real ownership is real custody over your digital assets only made possible through the innovation that these decentalized ledgers and databases are giving us

Weird, last time I checked Satoshi didn't ask for any money, Doge had no ICO, neither had Litecoin, and there was no IPO on Segwit but I kind of forget if I had to buy BitcoinCore from Microsoft. I'm sure I'm paying a monthly fee but I'm not sure it's Vodafone or Electrum.

So again:
What real innovation with real-world use and not a pump and dump hype garbage would be killed by this?

[bbc.reporter]

The government wants to kill this innovation by imposing old regulations where we are required to use government approved custodians to hold our assets for us and use government approved transfer agents to move our assets through them.

Bullshit!
The laws are strictly considering only financial institutions that are offering financial services to customers, it's nothing about how you decide to store or hide or safekeeping your coins.
Besides, look in what rabbit hole you've dug yourself, by claiming the government can impose this you've essentially said that any government can control Bitcoin and can decide what you're going to do with your coins, so at this point what is the point of all of this in the first place?

Also, if cryptospace innovation is being killed, the developers will move out.

You still haven't been able to give one single example of an innovation that is going to be killed by these laws.

In the cryptospace, real ownership is real custody over your digital assets only made possible through the innovation that these decentalized ledgers and databases are giving us

Weird, last time I checked Satoshi didn't ask for any money, Doge had no ICO, neither had Litecoin, and there was no IPO on Segwit but I kind of forget if I had to buy BitcoinCore from Microsoft. I'm sure I'm paying a monthly fee but I'm not sure it's Vodafone or Electrum.

So again:
What real innovation with real-world use and not a pump and dump hype garbage would be killed by this?

Hehehe it appears that you are arguing about something else. I am arguing about how the SEC might use old methods like the howey test on the different projects in the cryptospace. Those that fail this test will be considered as illegal securities that will need to register with the SEC. You do not know this or read about it in the news?

I told you already. It is underestimated that regulations on different projects, cryptocoins and tokens will kill the most important innovation that decentralized ledgers and databases have given us. Self custody of our digital assets. It might presently be a speculation, however, it is something overlooked.

I am scratching my head because you want me to argue about something else and fight me that it is what I am arguing about hehehehehee. No, I am talking about the SEC and the things that we might not have noticed.

In any case, read this again.

https://bitcointalk.org/index.php?topic=5447061.msg62196665#msg62196665

[examplens]

I'll leave this here in case anyone has funds stuck on Bittrex.
From Thursday, it will be possible to withdraw funds from the Bittrex exchange.

The U.S. arm of crypto exchange Bittrex is set to open for customer withdrawals Thursday following a ruling by a Delaware bankruptcy court

https://www.coindesk.com/policy/2023/06/14/bankrupt-crypto-exchange-bittrex-us-set-to-allow-withdrawals-starting-thursday/?utm_medium=referral&utm_source=rss&utm_campaign=headlines

[OmegaStarScream]

Okay so regarding the SEC charges we talked about a couple of months back, it looks like Bittrex has agreed to settle and pay a 24M fine:

Crypto exchange Bittrex settled charges of offering U.S. investors access to unregistered securities on Thursday, agreeing to pay a $24 million fine within two months of filing a liquidation plan for the exchange.

Your thoughts on this? It would be interesting to see what the rest (Binance, and Coinbase) is going to do as well.