Bittrex Global CEO criticizes SEC’s lack of communication on enforcement actions

On May 1, 2023

Oliver Linch, CEO of Bittrex Global, expresses frustration with the SEC, citing the absence of any communication between the two parties before the issuance of a Wells notice to the cryptocurrency exchange.

Oliver Linch, the CEO of Bittrex Global, a prominent cryptocurrency exchange, has expressed discontent with the United States Securities and Exchange Commission (SEC), asserting that the regulator never gave the company an opportunity to discuss potential enforcement actions.

Speaking at the Consensus 2023 conference in Austin, Texas, Linch emphasized that there had been absolutely no communication between Bittrex Global and the SEC before the issuance of a Wells notice to Bittrex.

The EU’s forward-thinking #MiCA framework supports crypto innovation, while the US’s retrofitted regulation-by-enforcement struggles to provide clarity.
Will the US lose ground to Europe’s clear guidelines, or can they adapt for the future of #crypto? Only time will tell.
— Oliver Linch (@OliverLinch) April 30, 2023

In April, the SEC filed charges against Bittrex, accusing the company of functioning as an unregistered exchange, broker, and clearing agency. Furthermore, Bittrex Global was implicated due to its involvement with a co-managed order book.

Linch’s apprehensions echo the sentiments expressed by other crypto firms based in the U.S., such as Coinbase, which has also reported insufficient guidance from the SEC even after holding multiple meetings.

Linch stated that the SEC had not communicated with Bittrex Global at all, leaving the company uncertain about what to expect from the regulatory agency.

Consequently, Bittrex announced in March that it would cease its U.S. operations by April 30, citing the challenging regulatory environment in the United States. It remains unclear whether this decision was made before or after receiving the Wells notice.

Bittrex Global, which is regulated in Liechtenstein and Bermuda, has its CEO advocating for a combination of regulations and regulators as the possible solution for cryptocurrency firms.

Linch points to the European Union’s Markets in Crypto Assets (MiCA) framework as a potential example, influenced by the regulations in Liechtenstein and Bermuda.

Nonetheless, the absence of regulatory clarity in the U.S. continues to be a major concern for many firms, prompting some to contemplate relocating their operations.

The issue has attracted the attention of lawmakers, who have recently questioned SEC Chair Gary Gensler on digital assets during committee hearings, signaling the ongoing debate surrounding cryptocurrency regulation.

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