Several crypto-active companies are considering migrating to countries with friendlier regulations.
France and El Salvador tempt exchange to leave the United States.
The Bittrex exchange will cease operations in the United States on April 30, 2023, it announced in a statement yesterday, noting that the “uncertain and unfavorable regulatory and economic environment” for cryptocurrency companies operating in the country , one of the reasons they make this decision.
“Simply It is not economically viable for us to continue operations in the current regulatory and economic environment in the United States,” says co-founder and CEO Richie Lai in a News is aimed at its North American customers.
“Regulatory requirements are often unclear and applied without proper discussion or input leading to this an uneven competitive landscapeLai added.
Bittrex is one of the largest and longest running exchanges in the ecosystem. But in October last year he was fined for “willful violation” of anti-money laundering (AML) and suspicious activity reporting (SAR) regulations of the Bank Secrecy Act (BSA), according to the US Treasury Department. UU.
Bittrex is not the only cryptocurrency exchange under legal scrutiny of the numerous regulators of the sector that the United States has.
Coinbase, Kraken and Binance have also been accused of wrongdoing, leading some to suspect that some or all of the cryptocurrency companies They will eventually emigrate from the United States.
As CriptoNoticias reported last February, the Securities and Exchange Commission (SEC) accused the Kraken exchange of not registering its crypto asset staking platform as a service.
The measure led many members of the community to believe that regulators have an agenda with them Intentions to ban the use of Bitcoin and other cryptocurrencies in the United States.
Some of them, like analyst Nick Carter, are warning about “version 2.0” of the Choke point operation That puts bitcoin and other crypto assets in the government’s crosshairs.
Will Bitcoin exchanges migrate from the United States?
When a Bloomberg journalist recently asked about the impact of the actions taken by regulators, Ripple CEO Brad Garlinghouse said: called The Companies will eventually leave the United States if the country does not define a clear regulation soon.
In fact, announcements by some exchanges and other companies show that they are indeed trying to establish themselves in other areas. It’s what Coinbase would try to determine your trading platform outside the USA, in an as yet unknown country.
On the other hand, several cryptocurrency companies have settled in the United States would look for banking partners in other jurisdictions. This has been interpreted as a premeditated action to send a message to the Bitcoin ecosystem and other crypto assets since the bankruptcy of Signature Bank and other cryptocurrency allies.
To illustrate the turning point the cryptocurrency industry of the United States is taking, Circle, the company that issues the stablecoin USD Coin (USDC). to plan set up its European headquarters in Paris, citing cryptocurrency-friendly regulation created by the government of President Emmanuel Macron as fundamental to this decision.
The United States is forcing emigration and El Salvador is seducing crypto companies
The well-known Bitcoiner Matt Odell went to twitter to comment on Bittrex’s decision to halt its US operations. From their point of view, this is a sign of it Something is wrong with this country’s regulation of the Bitcoin ecosystem and other cryptocurrencies.
Like Odell, other bitcoiners are commenting on the actions of US regulators that they can Unleash a rush of exchanges and other cryptocurrency companies.
“These are aggressive policies against cryptocurrencies,” says the user Jesus Kastrod. Many bemoan the United States government’s stance on cryptocurrencies; although others they clap the fact that Regulation will never affect Bitcoinbecause of its decentralization.
And to keep opening the doors to tech-driven companies, the Salvadoran government has proposed abolishing all taxes on innovation.
Measure will benefit cryptocurrency companies establishing themselves in this countryas announced it the National Bitcoin Office (ONBTC), also known as the El Salvador Bitcoin Office.