Crypto exchange Bittrex moving headquarters from Malta to Liechtenstein
Cryptocurrency exchange Bittrex has announced that it is moving headquarters from the “Blockchain Island” Malta to Liechtenstein.
While the reason for the move is not disclosed, the exchange said it will be closing Bittrex International, which operates out of Malta, on October 29.
Interestingly, just last month, Malta’s financial regulator said that it will “actively monitor” licensed cryptocurrency businesses in the country to prevent money laundering.
Coincidence or not, one month before Bittrex’s move the Malta Financial Services Authority announced new plans to update crypto regulations that will allow the watchdog to actively monitor exchanges and other firms to prevent money laundering.
The update is part of a strategic plan for 2019-2021. During this period, the MFSA hopes to improve the entire regulatory approach across all sectors.
The document says: “Whilst Malta has taken unprecedented steps in bringing blockchain and crypto technology into the regulatory fold, we understand that such innovations present challenges in the prevention of money laundering and terrorism financing. Hence, at the MFSA we will be striving to modernise our regulatory approach to be prepared and be a step ahead of industry developments.”
Upon closure in Malta, Bittrex will operate under the brand Bittrex Global, out of Liechtenstein. “Once Bittrex Global launches, eligible Bittrex International customers, including corporate accounts, will be seamlessly redirected to Bittrex Global,” said the exchange.
Bittrex Global has set up its new headquarters in Liechtenstein, a widely regarded ‘crypto friendly’ jurisdiction. Customers will be able to seamlessly move their accounts from one exchange to another once the move is complete.
Twitter user Whale Alert notified that Bittrex moved hundreds of millions in crypto funds to unknown wallets. The receiving addresses are most likely the exchange’s new wallets. One of the transactions was huge, amassing over 43,500 Bitcoin worth more than $414 million.
Besides that, Bittrex moved a further 5,000 BTC in another transaction, along with $127 million in Ethereum and over $90 million in XRP in three tranches of about 100 million XRP each.
In total, Bittrex transferred nearly $700 million worth of crypto funds, suggesting that it moved about 0.27% of the entire crypto market, whose capitalization is about $251 billion as of today.
Nevertheless, the exchange called for calm, assuring clients and the crypto community that the funds were safe.
The launch of Bittrex Global was initially announced earlier this month when the exchange said it will offer trading in cryptocurrencies per Liechtenstein’s Transaction Systems Based on Trustworthy Technologies Act, also known as the Blockchain Act.
Just last week, Bittrex announced that it is shutting down in 31 countries, including Venezuela and Zimbabwe, also on October 29, due to “regulatory uncertainty.”