BITCOIN-CRYPTO EXCHANGES HIT BY US REGULATIONS IN 2023 07th of April , 2023
The United States government have been in dispute with various bitcoin/ cryptocurrency Exchanges due to regulatory affairs in 2023. The major bitcoin/ cryptocurrency Exchanges include: Bittrex, Kraken, Binance and Paxful.
Bittrex according to the management is going to end United States Operations on April 30th 2023 after nine (9), years of existence. According to C.E.O Ritchie Lai "It's just not economically viable for us to continue to operate in the current U.S regulatory and economic environment." He clearly stated that "Regulatory requirements are often unclear and enforced without appropriate discussion or input resulting in an uneven competitive landscape"
Similarly, Kraken was sued in U.S Securities and Exchange Commission because of its staking services. This resulted to a $30million fine payment to the U.S. Furthermore the two Kraken entities (Payward Ventures, Inc. and Payward Trading Ltd.) agreed to immediately cease offering or selling securities through cryptocurrency staking. Click here for press release information by US Securities and Exchange Commission on Kraken
Binance was sued by the United States commodity Futures Trading Commission (CFTC) because they alleged that the exchange offers were unregistered crypto derivatives products in the U.S. The CFTC sued Binance, Zhao and former top compliance executive with “willful evasion” of the United States law “while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit”.
Moreover, the Management of Paxful wrote on their website that they will be suspending it's marketplace and they are not sure if they will come back. Although the management did not disclose publicly the reasons behind their actions, they stated that "regulatory challenges for the industry continue to grow especially in the peer-to-peer market and most heavily in the U.S". We hope PAXFUL resolve this problem as soon as possible because PAXFUL is.the largest market for trading PayPal to Bitcoin and other cryptocurrency with low fees. They also support third party check in dispute resolution in their Peer-to-peer (P2P) trading Exchanges.
Although there are strict laws in the United States in regulating cryptocurrency (such as bitcoin) and Exchanges, the overall growth of bitcoin seems to increase. For instance, PayPal app now have features to convert Usd, GBP Fiat currency to bitcoin or other major cryptocurrency. Other apps (e.g Cash App) allow the purchase of crypto using fiat money with fees. Consequently, this law enforcement in the U.S protects the investors showing the ever increasing trade of bitcoin in the states.