On August 25, 2024, Crypto Eri (@sentosumosaba), a prominent crypto figure and XRP supporter, shared a screenshot of an email from Bitrue, the crypto exchange, indicating that the exchange is temporarily halting its services for U.S.-registered users due to “regulatory uncertainty” in the region.
The email from Bitrue states that due to ongoing regulatory issues, it will be unable to offer its services within the U.S. To mitigate the impact on its users, Bitrue provided a 48-hour window for the affected users to take necessary actions.
These include trading any remaining assets, canceling all open orders, and transferring assets to their spot wallets. Following this period, accounts will be frozen again, with users having to await further instructions from Bitrue.
Some users in the comments noted that multiple other exchanges had faced similar problems, having to shut down services in the U.S. Crypto Eri also pointed out that she has switched exchanges four times because of similar occurrences.
Are Bitrue ‘s Regulatory Problems New?
Crypto Eri highlighted this situation on her platform, cautioning other U.S. users who might not have experienced this yet.
One user mentioned in the replies that he experienced this issue in April and was given only 12 hours to trade his tokens and close all investments instead of the 48 hours afforded to those recently affected.
However, this problem extends further back, as one user shared this issue in April 2023. He was given the same reason of “regulatory uncertainty in your region,” and the email stated that Bitrue could not offer services in the U.S.
Speculation from Fox Business journalist Eleanor Terrett and many others in the crypto community was that Bitrue was ending its service to U.S. customers.
However, one user replied shortly after that he still had access to his Bitrue account and replies to Crypto Eri’s recent post show that many U.S. investors still have access to Bitrue’s exchange.
Despite this, the news has caused some uncertainty and some investors have shared their desire to step away from the exchange as a precaution.
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Potential Reason for Bitrue’s Move
The ongoing lawsuits the U.S. Securities and Exchange Commission (SEC) initiated against various crypto entities are likely contributing to this uncertainty.
Despite its many losses, the SEC has been aggressive in its enforcement actions. Bitrue’s actions may directly respond to this regulatory instability, as exchanges seek to comply with regulatory expectations while minimizing risks.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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