DAN: Bittrex, a digital asset trading platform, has agreed to pay a $24 million penalty to settle charges with the U.S. Securities and Exchange Commission (SEC). The SEC alleged that Bittrex had failed to register as a national securities exchange and had failed to implement adequate anti-money laundering procedures.
The SEC’s order found that Bittrex had operated an unregistered national securities exchange from at least December 2013 to October 2019. During this period, Bittrex offered trading of digital assets that were securities and operated as an alternative trading system.
The SEC’s order also found that Bittrex had failed to implement adequate anti-money laundering procedures. The SEC’s order found that Bittrex had failed to establish, maintain, and enforce written policies and procedures reasonably designed to detect and cause the reporting of suspicious transactions.
In settling the charges, Bittrex agreed to pay a $24 million penalty and to cease and desist from committing or causing any violations and any future violations of the federal securities laws. Bittrex also agreed to retain an independent compliance consultant to review and assess its compliance program.
The SEC’s action against Bittrex is part of the agency’s ongoing efforts to protect investors and ensure that digital asset trading platforms comply with the federal securities laws. The SEC’s order emphasizes the importance of registering with the SEC and implementing adequate anti-money laundering procedures.
ibrate their expectations.
Increased Security
The settlement has also highlighted the need for increased security measures for cryptocurrency exchanges. Bittrex has agreed to implement a series of measures that seek to comply with the laws, including remedial compliance undertakings, registering with the SEC as a national securities exchange, undergoing annual testing and examinations, filing of periodic reports, and establishing a number of ‘controls, procedures, and assistance’. These measures will help to ensure the safety of customer assets stored on the platform.