SEC Charges Crypto Exchange Bittrex With Operating Unregistered Exchange, Broker, and Clearing Agency

After the study revealing that the cryptocurrency speech Bittrex had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), the securities regulator charged Bittrex and the company’s CEO connected April 17 for “operating an unregistered exchange, broker, and clearing agency.”

Following the Wells Notice, SEC Charges Bittrex for Violating Federal Laws

On Monday, the U.S. Securities and Exchange Commission (SEC) charged different cryptocurrency exchange, accusing the trading level Bittrex of operating “an unregistered nationalist securities exchange, broker, and clearing agency.” Since 2014, Bittrex allegedly sold crypto assets that were “offered and sold arsenic securities.” The SEC’s ailment was filed successful the U.S. District Court for the Western District of Washington.

The SEC further alleged that Bittrex Global should person registered the exchange, and the regulator claims the 2 entities leveraged a “shared bid book.” The ailment besides notes that Bittrex should person registered arsenic a clearing bureau and a broker. “[Bittrex] regularly engaged successful the concern of effecting transactions for the accounts of others successful crypto assets that were offered and sold arsenic securities,” the SEC’s ailment insists.

“Today we’re holding Bittrex accountable for its noncompliance,” SEC seat Gary Gensler wrote successful a connection connected Monday. “Today’s action, yet again, makes plain that the crypto markets endure from a deficiency of regulatory compliance, not a deficiency of regulatory clarity. “As alleged successful our complaint, Bittrex and issuers that it worked with knew the rules that applied to them but went to large lengths to evade them by directing issuer-applicants to ‘scrub‘ offering materials of accusation indicating that definite crypto assets were securities.”

The SEC president added:

Further, Bittrex, arsenic alleged, failed to registry and comply with U.S. securities laws arsenic an exchange, broker-dealer, and clearing agency. Cosmetic alterations did thing to alteration the underlying economical realities of the offerings and Bittrex’s conduct.

The SEC’s complaint follows the recent news that Bittrex received a Wells announcement informing the cryptocurrency speech of imaginable enforcement action. Bittrex’s wide counsel, David Maria, told the Wall Street Journal that if the SEC decided to writer the firm, the speech would contention the enactment successful tribunal unless the regulator “presented a tenable colony offer.” At the clip of writing, the SEC’s ailment doesn’t connection immoderate settlement, and the tribunal filing says a “jury proceedings [is] demanded.” In summation to the cryptocurrency speech Bittrex Global, the company’s CEO, William Hiroaki Shihara, is besides named successful the case.

What are your thoughts connected the SEC’s latest enforcement enactment against Bittrex, and bash you deliberation it volition pb to accrued regulatory scrutiny successful the cryptocurrency industry? Share your thoughts successful the comments conception below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This nonfiction is for informational purposes only. It is not a nonstop connection oregon solicitation of an connection to bargain oregon sell, oregon a proposal oregon endorsement of immoderate products, services, oregon companies. Bitcoin.com does not supply investment, tax, legal, oregon accounting advice. Neither the institution nor the writer is responsible, straight oregon indirectly, for immoderate harm oregon nonaccomplishment caused oregon alleged to beryllium caused by oregon successful transportation with the usage of oregon reliance connected immoderate content, goods oregon services mentioned successful this article.