Topic: Bittrex shutting down: What can exchange do differently to avert this trend. (Read 309 times)

binance exchange reached another level in cryptocurrency market as a top tier exchange right now in their trading volume,
so there are no bad impact here, it seems strong foundation, they're enough rich to overcome this us charges, binance isn’t like an other exchanges, they ensured security for their users funds, it’s enough to trust binance.

The SEC does not care about this industry, if they could kill it completely you can be sure they would do it in a heartbeat, but since they cannot do it they are taking the next best path for them, which is to use all its power and impose so much regulations that exchanges decide to not deal with US customers.

And to be honest this is nothing new, even foreign banks want nothing to do with US customers as they know the costs they will have to pay to comply with the law makes servicing those customers not worth it.

Can we basically say that we are seeing USA (or more like SEC) attacking these exchanges? I mean maybe they want to build a centralized big huge exchange that covers the whole world, could be a private business, but the owners would be at the pockets of the government, and via that exchange they could control the crypto market, not for price or ruining it or anything but they could have a control (or at least some) over the money that goes around in the crypto world. With Bittrex gone, and Binance gone (not gone really), we could say Coinbase could grow a lot, and taking that space means billions of dollars going into it, all followed by SEC very carefully, very difficult situation for us.

Probably, their timing for mandatory KYC was wrong but I feel that wasn't the only reason for the shutting down. I think SEC needs to take it slow with most exchanges not to frustrate this industry.

It seems the US hate crypto space so much but maybe there is another reason behind this apart from protecting the customer just in my opinion

the answer is by not operating in the US, because you can see that the SEC will continue to take action against exchanges that do not comply with their rules and when the exchange gets sanctioned then it is like the end of them running the exchange business.

Currently, it is still Binance even though their CEO has just left the exchange but Binance's volume is still high compared to others, or a new CEX that may appear in the near future as this is still a profitable business in the crypto world.
Meanwhile, US citizens can make P2P transactions or use DEX, but the volume will not be as high as CEX.

It is becoming harder for exchanges to operate within the United States. Many of the top exchanges have had problems with US regulators so it is best to avoid that region until more crypto friendly politicians come into power. Playing by their vague rules and obeying their guidelines doesn't seem to be enough. They will continue to arbitrarily target businesses in order to have tighter control over citizens' financial activity. We will continue to hear that Hamas and Iran are using these exchanges but these are only scare tactics, none of these actions affect terrorism financing or money laundering. The land of the free will oppress freedoms if it means maintaining economic hegemony.

The idea that centralized exchange is bad because the yare being attacked right now is not really a smart idea. I mean just because Binance got a fine, and bittrex is shutting down, doesn't mean that centralized is the bad idea. I mean I can show you a million DEX that got hacked and all the money was emptied from the liquidity providers as well, there are bots that does automatic trading to ruin everyone there. So all in all, I can easily say that CEX is still better, just because sometimes these things happens, doesn't mean it's bad.

Moreover, not like they are stealing your money, if you have money in them then withdraw it, that's allowed, which means that there is nothing wrong with the exchange at the moment and you can still continue to use them. I believe that we are looking at something that's going to be quite fine, it's just a business that looked at the profits and loses and they realized that it is not worth it and decided to close shop that's it.

The thing is, you cannot satisfy everyone if you want to do things according to yourself. There will always be people who will be against you no matter what. Maybe that's a good thing or maybe that's a bad thing. If the exchange itself is doing something wrong and people are going against it in order to prevent it from happening then it's a good thing. But if not and they are trying to control the exchange to their liking then it's a bad thing which could affect other users.

But the main thing here is centralization. The problem arises only when the platform is controlled by some entity and those entities could be controlled by powerful people. Decentralization is the key no matter what but we can't also do many simple things without the help of centralized exchange. It is a complicated situation but moving to other platform could be the best option. And also it is not 100% guaranteed that they won't face the same fate. That's why it is difficult to advise someone for using centralized platform.

I was not here in 2014 but I witnessed the growth of Bittrex in 2017 when they took over the first position of Poloniex. The Poloniex exchange did not expand their infrastructures well enough to meet with user explosion in bull market 2017 and their platform many times suddenly gone with lags, users lost money with their liquidations in Margin trading.

Bittrex took over the leading position by listing many shit coins and gave their space to go to Moon. Speculators liked it because they could find many hidden gems on Bittrex.

Relating to KYC, you must mention AML (Anti Money Laundering) too.

CEXs can only avoid this by being more in line with regulations. That's all. It's not just about KYC too it's about security and insurance and transparency.

But are we prepared for extreme KYC? Do we really want it?

The real answer is DEX, and a real return to p2p trading. The way it's meant to be.

Oh really? I thought they are still relevant back on that year. And 2017 was actually the first big hype of crypto because a massive bull run have hit the market. I think Bittrex only started to decline by the time we hit the year 2020's. It's normal to see a mineable altcoin with great potential in the past, so not only Bittrex can list them. Sadly the situation have changed after a couple years have past. Now most coins are POS based and many of them are shitcoins.

Another thing that changed the crypto market is the introduction of KYC. This have killed many great names because they only believe on the real vision of satoshi which is decentralization.

Let’s not say this as a trend as they are facing such problem for almost years now I think and Bittrex suddenly lose the market exposure after some negative development on their platform so I think this is where they are heading. Binance is a different story though as they are guilty of violating the regulations and in order for them to stay in business they have to negotiate probably this is what missing with FTX before, they didn’t negotiate that much.

This could be the trend if they continue to practice such anomaly, probably CEX will still be on the hot spot from the regulations as they continue to make money and of course as they continue to offer services that might hurt the banking system. This is a sad news to hear a pioneer exchange leaving the market totally, hoping that the top exchange today will remain in service and remain competitive.

SEC is a mortal instruments that goes after exchanges to another exchange especially if it does not favour them or rule for them especially that chairman, always looking for the wrong cause of exchanges but I don't blame them, centralized exchanges has done worse, deprived there money and reported people to agency, they are getting the same treatment they were given others and it's fair in my opinion.

The exchange to use? Well, just look for anyone that doesn't ask for KYC after everything on the exchanges because we many of them that will say they don't request for KYC but will lock your account the moments you want to withdraw money from their exchange. So, go to Coingecko and check for any of them that don't need your kyc to use their exchange

Am shocked to hear about the Bittrex shutting down issue and I hope they recover from the bankruptcy and rebound stronger.
This kind of cases goes to separate those that mean business and have the means, from those who are copycat, don't have the means to payoff penalties and don't maintain an initiative or improve on it.

Exchanges should endeavor to check the regulations of the country of their operations and do things by the book in order to avoid such scenarios that call for huge penalties and sanctions.

By following the rules and regulations of the country in which they are running their operation. What happens with binance should be a warning for other exchanges. The acquisition was clear against binance that they were transferring money between the USA sanctioned country and customers from the USA. They were doing that and that is why they just accepted to pay the penalty fees for their action. Bittrex filed for bankruptcy and their global operations were shutting down too.

Binance is certainly still strong, because only Binance US has always had problems with its regulators.
This problem will make Binance even stronger with Richard Teng as a replacement for CZ.

And Teng will focus on:

1) reassuring users that they can remain confident in the financial strength, security and safety of the company
2) collaborating with regulators to uphold high standards globally that foster innovation while providing important consumer protections
3) working with partners to drive growth and adoption of Web3

Related to Bittrex it will only be a memorable exchange, I traded there a lot and completely stopped a few years ago, when Bittrex really had a lot of problems.

I agreed. There will new platforms that will emerge. So far the one that cant be swayed is probably Binance even with the curre t issue and resignation of CZ this exxhange will be built stronger than before. For sure CZ wanted to explore outside his home turf and do soem defi stuff and a lot of dexes will surely resurfaced for that. Too bad for bittrex that they arent gonna survive this.

And with that recent news in regarding CZ issues then it did result to this.

Binance saw $1 billion in net outflows over the last 24 hours
https://www.theblock.co/post/264204/binance-saw-1-billion-in-net-outflows-over-the-last-24-hours

Very normal reaction and it is really just that too fast for those people who do able to pull their assets on Binance. Even myself did make out such action
because assuming that it would be really be closing afterwards but we are really seeing different thing or situation now on which it does seems it didnt really
give out such huge effect.

Centralized exchange is never been safe in the first place but due into its features and convenience then it cant really be avoided
that you wouldn't really be using this despite if it against your interest or do simply talks about anonymity.

Perhaps I'm being over the top but I don't view centralized exchanges as something that here's to stay, they will come and go for whatever reason -- that's why as a user, I take some precautions.

But exchanges can however, make some wise decisions to extend their lifespan. For instance, don't go with strict jurisdictions such as US and treat your users with a minimum amount of respect.

Personally, I do not recommend any centralized exchange. There is no centralized exchange that is safe or out of the reach of the SEC. This is of course in addition to the many other disadvantages related to centralization.

Everyone thought that Binance was the safest central exchange in which crypto assets could be stored without fear, but today’s news shattered all these illusions, after CZ admitted to money laundering and the charges against Binance and the large fine that must be paid.

Therefore, I advise you to stay away from all central services and go towards DEX that does not require KYC, or the best solution is to store your crypto assets in an non_custodial wallet.

Yes, perhaps issues like misappropriation of funds or non-compliance. So far, the mentioned CEX has consistently adhered to regulations, contributing to its steady growth.

Before a golden time of Bittrex, it was a time of Poloniex but those exchanges both had shady things in operations and very bad infrastructures to run their platforms smoothly with explosion of cryptocurrency market in 2017. Then Binance stepped in and took over leading positions from Bittrex and Poloniex. Now, it's a time for Binance to go down.

Do anyone forget that how Binance security and audit team internally failed to detect massive deposit of Do Kwon after he minted massive LUNA tokens (now LUNC) and dumped it on Binance to kill many LUNA holders. Not sure a big exchange like Binance let it happened and if they did not agree something with Do Kwon for this, their internal teams actually had dead holes that were exploited by Do Kwon.

To some extent, the exchange I know has been keeping up to tabs with regulations; Bitget, isn't even available directly in the US unless you wanna access it through VPN. SEC is really doing the most! Driving out good players out of their jurisdictions does no good to investors in those regions.

Being asked to KYC can't be the reason why they're shutting down. Bitget was KYC free before they had to comply with regulations to incorporate KYC for their users. So far so, nothing seems to be going out of the ordinary or some sort of irregularity with them. There must be something. I'm thinking bankruptcy

You mean something they named it SAFU?
What you need to know is that CZ is now leaving the company as per today. I don't understand how you will follow in the footsteps of an exchange that is even more frequently threatened with regulation.

I've heard of that exchange, yeah here: https://bitcointalksearch.org/topic/whats-up-with-all-the-bitget-shills-5472656

Trust scores are good indicators but I think a lot more should be considered with the recent unfolding in the industry. We can see a lot going round about Binance. Even though this might reduce their market share, users still have some level of confidence because they have verifiable proof of reserve and customer protection fund. Aside Binance, the 2nd and perhaps the only exchange with customer protection fund and verifiable proof of reserve that has their wallet address public is Bitget. So it's important to know where to keep our funds to avoid stories that touches the heart.

Don't deal with the US market, that's all. Traditional financial institutions are government-facilitated and driven entities, it is not an industry that is as easy as crypto to make money without restrictions.


Find it here https://www.coingecko.com/en/exchanges.

Actually, I noticed that too. I thought maybe I was the only one who noticed, but it's not; someone else also noticed what I saw in the exchange. Like you, my account was also closed after a few months or a year before I opened it again, but when I tried to open it again after many months, I couldn't open it.

Even in other exchanges similar to the system Bittrex uses, if you become inactive for 6 months, your account will also be frozen. That's the bad thing about centralized exchange platforms.

Every about 7 years, the TOP BITCOIN CRYPTO EXCHANGE list changes, and this happens over and over again. Therefore, I would not be surprised if all the platforms we know become non-existent or their ranking changes in the coming years. Therefore, I do not claim to be alarmed, as there are platforms that are leaving, there are other methods that are emerging, but the only problem is that identity verification restrictions are increasing to verify the residential address of the source of income, so if you care about your privacy, start directly using P2P DEXs.

And do you think any centralized exchange can be consider as reputable by the crypto community again?

They are always going against their words; they will promise external security, privacy protection, and lots more, but most of them cannot be trusted because they might leak our personal data or sell it out anytime; if they did not leak or sell our data, then they would follow the trend of going bankrupt or being hacked.

Just yesterday, we heard so much news regarding one of the world leading exchanges, Binance, about the confession the CEO made for violating some financial security rules and his resignation as Binance CEO. This type of news is enough for us to start thinking very seriously about the personal information we are submitting to these exchanges during KYC because we are not safe with them.

Bittrex has been going downhill since 2017 pretty much. It was a great exchange back in 2014 because they listed pretty much all of the newest altcoins you were able to mine and had a great platform.

However they were forced to do KYC and that’s when the exchange started to experience problems and lose market share. It hasn’t been a leading since 2015-16 pretty much, just like Poloniex.

Another one bites the dust at the hands of SECs doing, so with this aggressive approach of targeting all exchanges that comes up on their radar as one that is serving US citizens...do we have any exchanges that are compliant to SECs rulebook

And business being a numbers game, how best can one of the biggest economies in the world be served atm because a DEX isn't enough...

Customer = user or investor or trader.
Consumer protection? like crypto is only filled with Americans.

Yes, we already know and understand how rotten this is, still the crypto monopoly attempt by the US will not succeed if we are all strong, Bitcoin or crypto without America can also run well. I remember when the US tried to control and monopolize gold. Almost the same scheme 🤔

They want to charge money from exchanges but do they take those legal actions against exchanges because they want to protect their citizens who are cryptocurrency users, investors, traders. I believe it is not their reason to take down centralized exchanges, peer to peer marketplaces in their country like Paxful.

I like the hearing of Garry Gensler in the US. Congress earlier this year, one of Senator told that those recent legal actions of SEC against cryptocurrency companies are to force them moving from the USA. and migrate to other nations.

If he is guilty, he has to step down and it is not his choice. He only proactively did this, announced this to avoid worse consequences on Binance.

Different guilt but action is not different from BitMEX CEO.
BitMEX CEO Arthur Hayes leaves role after US charges

I am not surprised by the news, If you have been using Bittrex for a while now, you will notice an increase in fake orders and a decline in trade volume. The exchange close my account last year because I didnt visit. What exchange does that when we know bear market is always low? Just a lot for a day with Binance CEO stepping down and Kraken lawsuit

Crypto Exchange Bittrex Global to Shut Down
All trading on the platform will be disabled on Dec. 4, several months after Bittrex's U.S. arm filed for bankruptcy and stopped operations. - https://www.coindesk.com/business/2023/11/21/crypto-exchange-bittrex-global-to-shut-down/

I agree after watching the thread I immediately looked at what happened to the Bittrex I know that Bitrex Global is winding down and filed chapter 11 in the US but I dont expect the Bitrex Global to also want to close its operation.

and US again and again is the key problem I know that they say it is for protecting the customer but the way they doing impact to all crypto investor. 

The Recent news is Binance founder Changpeng Zhao agrees to step down and plead guilty to violating criminal US anti-money laundering requirements.

Binance will also admit wrongdoing and agree to pay $4.3 billion in fines.

CZ is scheduled to appear in Seattle federal court Tuesday afternoon and enter his plea.  - https://www.wsj.com/finance/currencies/binance-ceo-changpeng-zhao-step-down-plead-guilty-01f72a40

What happened at Bittrex has been going on for a long time and is only now final. And as we know. America gets free BTC again from Bittrex asset confiscation. If problems like this are not resolved, I think the bitcoin ETF will experience delays, plus now Binance has started dealing with the SEC. I think all large exchanges entering America must be prepared to face the SEC like previous exchanges.

Poloniex, Bittrex, Bitmex were destroyed one by one. FTX with a big case of money laundering.

The US indirectly acted to establish a monopoly.

Either they move away from the US, stop servicing US customers, or be as rich as Binance to pay $4 billion when the government asked for it. If you're a US customer maybe P2P is a good alternative if what you need is just a simple buy and trade, or wait for a while before choosing any new exchange since it doesn't seem like SEC is going to stop soon. There is a high chance they will sue every exchange before even giving a clear guideline on how to register etc. CMIIW.

Are you aware that Bittrex Global and Bittrex are different?

Bittrex Global is on US.

Crypto Exchange Bittrex Global Shuts Down Following Battle With SEC
https://decrypt.co/206761/crypto-bittrex-global-shuts-down-sec

According into  the report.
Bittrex shuttered its U.S. exchange because it was not "economically viable" to continue doing business following a lawsuit and $29 million settlement with the SEC over alleged securities laws violations.
Source

So this is again talking about SEC issues. Im not really that shocked on this one.

Bittrex shutting down: What can exchanges do differently to avert this trend.

Exactly one year ago since the unfortunate collapsed of FTX, Bittrex has also announced the closure of its services after nearly a decade of operation effective December 4th 2023.

The reason for the closure has not been made public as of this time but it's worthy to note that the exchange U.S arm of operation filed for bankruptcy in May following a legal indictment by the security and exchange commission (SEC) for operating a security exchange without the right approval but one good news is that users assets/funds are safe and are available for withdrawal as disclosed by the exchange official X platform. A different scenario compared to that of FTX.

This news further posses that there are still significant risk accompanied by this evolving industry but the question is what can exchanges do to ensure that they are able to stand the test of time just like the traditional financial institution.

There are quite a few other exchanges that has proven to be reliable and dependable on the long run because they have been investing heavily in there ecosystem but this kind of news leaves one to wonder if such scenario won't later occur in future.

In the wake of Bittrex users seeking another exchanges, which exchange do you recommend? and do you think they have what it takes to stand the test of time.