Bittrex Crypto-Exchange Introduces USD Trading
Bittrex has announced that it will start accepting deposits in USD. So far, the famous cryptocurrency exchange has operated solely with USDT, a fiat-backed cryptocurrency that has been stirring up some controversy in the cryptosphere. Bill Shihara, CEO and founder of the popular crypto-exchange clarified that this option would not be available for everyone. More than likely, it will only be available for institutional investors. Allowing USD trading should definitely make it easier for crypto investors to deposit and withdraw fiat directly through Bittrex. If you’ve used this exchange, then you know that you have to first purchase crypto (either BTC or USDT) from another exchange that has the fiat pairs you’re looking for, and only then can you transfer your digital currencies over to Bittrex.
Bittrex, which was founded in 2013, is known to offer a large selection of tokens and coins. Therefore, permitting USD trading should only attract more users to the platform. Mr. Shihara acknowledges that it’s tedious to take the Bitcoin or Ethereum you’ve externally bought with USD back to Bittrex just to perform a simple trade. He admits that the current trading process has required having to manage multiple wallets, which can be quite cumbersome, not to mention inefficient. Moreover, the crypto-exchange founder explains that the concept of public and private keys is too complicated for the average person to wrap their heads around.
According to Mr. Shihara, who was previously a security specialist for Microsoft, his exchange is designed for the more experienced cryptocurrency trader. Moreover, he stresses that novice traders should avoid trading on his platform. Just like many other crypto-exchanges, Mr. Shihara’s exchange has been overwhelmed by a large number of users jumping onto his trading portal. Digital currency exchanges have not only had to deal with a large number of new accounts on their platforms but also with the changing regulatory landscape.
Back in October 2017, Bittrex abruptly announced that it had to deactivate numerous accounts in order to address compliance issues. Then, in December 2017, the crypto-exchange had to stop new users from registering because it couldn’t keep up with meeting the demands of the existing customers. The exchange was also not able to properly verify each new user due to a large influx of traders.
Maintaining a Good Reputation
Mr. Shihara and his business partners realize that since they’re operating a US-based crypto-exchange, they must comply strictly with KYC and AML guidelines. These policies are a part of what’s now considered standard practice for verifying the legitimacy of any business, and the identities of the individuals who are involved in its operations. These guidelines also encompass various anti-money laundering regulations.
Having to comply with so many rules requires a lot of effort and manpower. Therefore, Mr. Shihara plans to bring an additional 20 support contractors onboard. This would give his exchange a total of 80 support contractors to handle various aspects of customer support, including identity verification. Hopefully, Bittrex is prepared to accommodate USD trading at this point. Only users who actively use this exchange, and this particular new option, will be able to tell us whether their crypto-trading experience has improved.