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The regulatory pressure on major crypto companies has led to tough times for global players like Binance and Bittrex. As the rules become stricter, Bitget Research chief analyst Ryan Lee explained the implications of regulations and compliance for the wider crypto ecosystem.
From regulatory actions against key players to the prolonged bear market, it’s hard to say the year 2023 went easy on the crypto industry. Governments spent no time following the epic collapse of the United States-based centralized exchange FTX in late 2022 and accelerated their efforts to push stricter regulations for crypto-related businesses.
While the pressure against centralized crypto exchanges was felt around the world, the U.S. Securities and Exchange Commission (SEC) made the most headlines numerous times over the year. From U.S.-based companies like Coinbase and Kraken to non-U.S. entities such as Binance, the U.S. SEC had a busy year targeting crypto-related organizations amid global regulatory uncertainty.
As a result, key crypto players started halting some services, narrowing down their operational regions or moving them out of the U.S. jurisdiction. Crypto exchange Binance, for example, announced winding down a large number of services throughout the year.
It’s hard to say which service was directly hit by regulatory concerns, but 2023 saw Binance shutting down Binance Connect, terminating Russian Ruble deposits, and halting service in several countries from around the globe. Changpeng Zhao, founder and former CEO of Binance, is even rumored to push for shutting down U.S. operations completely.
Another centralized crypto exchange that directly took the heat of regulatory action was Bittrex. Following the bankruptcy filing of Bittrex.US in May, the Liechtenstein-based Bittrex Global announced it’s winding down operations after almost a decade of service.
What do strict regulations mean for the wider crypto ecosystem?
The year 2023 provided the crypto industry with a sneak peek of what will happen when regulators finalize their crypto-related efforts and rules become stricter. As the year draws to a close, seve
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Author: CryptoDaily
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