In a defiant move, Bittrex Global, one of the leading cryptocurrency exchanges, has confirmed that it will fight against the lawsuit filed by the United States Securities and Exchange Commission (SEC). The company maintains that it has not served US customers, thus questioning the basis of the SEC’s legal action.
The SEC Mistakenly Charged Bittrex!
In a recent phone interview with CoinDesk, Bittrex Global GmbH CEO Oliver Linch asserted that the US Securities and Exchange Commission (SEC) is “mistaken” in accusing the crypto exchange of violating local securities laws.
Linch’s statement comes in response to the SEC’s charges filed on April 17 against Bittrex Inc. and its former CEO William Shihara for operating an unregistered securities exchange, broker, and clearing agency in the United States.
Furthermore, the SEC alleged that Bittrex Global GmbH failed to register as a securities exchange due to its operation of a “single shared order book” with the US-based Bittrex.
The regulator claimed that both Bittrex and Bittrex Global should have registered as an exchange since they facilitated the interaction of securities orders from multiple buyers and sellers using “established, non-discretionary methods.”
Linch staunchly defended Bittrex Global during the interview, emphasising that the SEC’s allegations are unfounded and demonstrating the company’s determination to challenge the charges.
The complaint mentioned that Bittrex offers Bittrex Global the technology required to operate its trading platform, which includes a single matching engine and a shared order book maintained by Bittrex personnel in the United States.
Additionally, the complaint highlighted that the design and functionality of the Bittrex Platform bear similarities to registered national securities exchanges, from its display and order book to order matching and trading rules.
Bittrex Never Served US Customers
Regarding SEC’s allegations, the CEO commented,
“We’ve not really seen an explanation as to what the SEC’s thinking is there, why that is of significance. Suffice to say we think that they’re mistaken in the way they conceive of it legally and in terms of facts.”
Bittrex Global CEO Oliver Linch, who took the helm last year, firmly stated that the company never claimed to offer services in the United States. He mentioned that Bittrex Global would vigorously defend its stance that it does not have any customers in the country.
The SEC has recently come under fire from the industry due to a series of enforcement actions and notices of scrutiny that led to some firms, including Bittrex Inc., ceasing operations in the US, either partially or entirely. Industry insiders have criticised the SEC for its approach of regulating through enforcement rather than providing clear regulatory guidance to companies.
Following the lawsuit against Bittrex, SEC Chair Gary Gensler emphasised that the action demonstrates the issues in the crypto markets stem from a lack of regulatory compliance rather than a lack of regulatory clarity.
The complaint alleged that Bittrex’s former CEO, Shihara, collaborated with crypto issuers to eliminate language that suggested the assets involved were securities.
Linch expressed that it was an unfortunate day for Bittrex, but the closure did not impact his company’s global operations. He confirmed that Bittrex was a completely separate legal entity that catered exclusively to the U.S. market and its customers.
As Bittrex shuts down its operations, Bittrex Global will continue to provide services to clients in the rest of the world as it always has, he said.
Last week, SEC’s Gensler encountered challenging inquiries from U.S. lawmakers regarding his approach to the crypto sector.
Meanwhile, the European Parliament approved a significant crypto licensing framework. Linch remarked that the responsibility lies with the U.S. Congress to establish a regulatory regime if they desire one
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