Reasons Why Crypto Exchange Platforms Have Been Sanctioned

Reasons Why Crypto Exchange Platforms Have Been Sanctioned

The world of Cryptocurrency is full of many risks but also many possibilities and opportunities, which awakens people’s ambition and leads them to commit fraudulent acts; even the exchange platforms also make mistakes that affect them later in a straightforward way. Buy and sell bitcoin using Big Money Rush APP for competitive market rates.

Currently, the measures that the US government has taken are controversial, sanctioning the Bittrex cryptocurrency exchange platform, one of the most used and fundamental for the market; said order was issued after verifying several irregularities committed to infringing the laws in the country.

Faults committed by the Bittrex platform

This platform was investigated by the department that controls assets abroad known as OFAC and the entity to monitor financial crimes, finding faults ranging from money laundering to many other illicit activities of great magnitude, this being communicated to the treasury department of the United States, assigning a payment sanction ranging from 20 to 30 million dollars.

According to this inconvenience presented by this platform, the treasury department emphasizes establishing rules and regulations based on the control of the use of cryptocurrencies to prevent them from being used excessively in illicit businesses.

The result of inquiries made to this platform by the competent authorities resulted in more than 200,000 operations by users located in entities under economic restrictions by the US government, such as some Arab countries and Cuba.

Through those transactions, the movement of some 300 billion dollars is calculated, a reasonably considerable amount to consider.

The magnitude of Bittrex’s vulnerability to the market

The experts in charge of this investigation define that the evident fault is based on the platform’s inefficiency in investigating the users’ identity to observe their link with the lists of those penalized by the OFAC.

This aspect is somewhat challenging to control due to the decentralization that characterizes the cryptocurrency market; therefore, it is difficult to strictly monitor the operations carried out within said platform.

These control and monitoring measures, imposed by the US treasury department, have turned out to be the most imposing that have been applied to an exchange platform that operates with blockchain technology today.

Bittrex is blamed for the lack of systematized monitoring and control for all exchange operations carried out through its interface; these vary between 10,000 to 15,000 daily for which many of them may violate the law, which you want to avoid with these silver measures.

Bittrex is silent on its failures.

The platform is also being judged for failing to report the irregularities observed during its manual reviews at certain times.

This process prevented the activities of which said the platform was accused of being observed from the outside and which could have been disclosed in time during past years.

This platform is one of many to receive sanctions since it can be seen as an attack against cryptocurrencies. In addition, public figures, such as Kim Kardashian, were also fined simultaneously with this measure for expressing their interest in cryptographic investments and suggesting them.

On the one hand, the regulatory entities are within their rights to issue laws that regulate cryptocurrencies. Still, users are disgusted because the greatest attraction of investing in them is their free trade, an aspect known as decentralization.


Many exchange platforms worldwide operate with cryptocurrencies, which try to comply with the laws currently imposed by regulatory entities, for which they are also affected and lose the number of users who make life in them.

Investors are already used to managing their digital assets without control and without waiting for the authorization of third parties.

This dilemma will directly affect the crypto economy because we can already see the absence and withdrawal of many users from the different exchange platforms, forced to implement security and control measures to continue providing the service.

The crypto market has its advantages and disadvantages. Still, most people are used to operating freely and to their liking, which is difficult to change for third-party control measures from one moment to the next. Bittrex must cancel its okay to continue providing the service but from now on, under strict regulation, to be in the eye of the US Treasury Department.

Masab Farooque is a Tech Geek, Writer, and Founder at The Panther Tech. He is also a lead game developer at 10StaticStudios.
When he is not writing, he is mostly playing video games

Masab Farooque
Masab Farooque is a Tech Geek, Writer, and Founder at The Panther Tech. He is also a lead game developer at 10StaticStudios. When he is not writing, he is mostly playing video games