Bittrex struggled over the last two years amid problems with regulatory compliance and declining market share. As a promotion, the exchange is lowering trading fees and adding Euro markets to expand its reach beyond the U.S. This is the first of such promotions.
Bittrex’s market share fell from 30 percent in August 2017 to 2.4 percent in May 2019. The exchange has had difficulty complying with U.S. regulations and been forced to reduce its services for U.S. customers.
Bittrex recently announced it would be closing 32 of its markets to U.S. customers. On June 21, the markets will transition to Bittrex International, the exchange’s platform for non-U.S. customers.
The New York State Department of Financial Services (NYDFS) ordered Bittrex to cease operations in the state of New York last month after denying its application for a BitLicense. Regulators cited the exchange’s failure to address capital requirements and concerns with its procedures for KYC and AML compliance.
To Bittrex’s credit, U.S. companies working with blockchain and cryptocurrency have struggled as regulators have failed to provide clarity regarding the application of existing securities and accounting laws. The IRS finally offered guidance on the tax treatment of virtual currencies at the end of April, just weeks after the annual deadline for filing tax returns.
The U.S. cryptocurrency market has been losing ground to Asia over the past two years. According to James Todaro, managing partner at Blocktown Capital, trading volume in the U.S. has lost a third of its ground relative to volume in other countries.
For those who disagree the US is falling behind in crypto bc of regulations, think about this:
Just 2 yrs ago, US exchanges accounted for ~65% trade volume.