• The U.S. Securities and Exchange Commission (SEC) has filed a complaint against Bittrex Inc. and its former CEO William Shihara for operating as an unregistered securities exchange.
• The SEC believes that many crypto companies are selling digital currencies that could be labeled as securities and have not followed the appropriate registration protocols.
• Recently, the SEC settled with Kraken to pay $30 million in penalties and issued a Wells notice to Coinbase indicating it is being watched.
SEC Fines Bittrex For Operating Unregistered Securities Exchange
The U.S. Securities and Exchange Commission (SEC) has filed a complaint against digital currency company, Bittrex Inc., and its former chief executive officer William Shihara, alleging they have operated as an unregistered securities exchange for years in violation of the law. This is the latest development in the SEC’s mission to ensure that companies offering digital assets comply with all legal regulations concerning their business operations.
SEC Believes Crypto Companies Are Selling Digital Currencies Labeled As Securities
The SEC believes that many crypto companies are selling digital currencies that could be labeled as securities but have not followed appropriate registration protocols with the agency, which prompted them to go after Bittrex this time around. In a statement, SEC head Gary Gensler mentioned: “Today’s action…makes plain that the crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity.“
SEC Engages In Settlement With Kraken & Issues Wells Notice To Coinbase
Recently, the SEC engaged in a settlement with another digital exchange called Kraken forcing them to give up $30 million in penalties and ending all staking services. Additionally, Coinbase also received a Wells notice from the agency indicating it is being watched though they haven’t been charged yet – meaning charges may follow in due time if they do not adhere to regulation accordingly.
About Bittrex & Its History
Bittrex initially launched in 2014 and quickly became one of the world’s 50 largest digital currency exchanges shortly thereafter; however now appears out of compliance with legal standards set by both federal & state governments concerning their business practices involving cryptocurrencies or other such assets as described above according to this lawsuit filed by The US Securities & Exchange Commission today May 28th 2021
Conclusion
It remains unclear if these companies really are engaged in illicit behavior or if authorities are simply making excuses to go after whatever enterprise they want – either way there has been increased scrutiny on cryptocurrency businesses lately so hopefully more clarity can be brought into this space soon enough so everyone involved can understand exactly what type of regulations should be followed when participating within these markets moving forward
