Regulatory issues in the US prompt yet another crypto-related firm to say goodbye to several cryptocurrencies.
Bitstamp, a renowned cryptocurrency exchange, has recently decided to cease trading of seven cryptocurrencies for its US clientele.
On August 8th, Bitstamp declared its intention to stop US investors from trading Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND), and Solana (SOL).
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The exact reasons behind this move remain unclear, but the prevailing belief is its connection to the US Securities and Exchange Commission's (SEC) claims against these digital assets. The SEC has notably accused these cryptocurrencies of being unregistered securities, especially in its complaints targeting major crypto exchanges, such as Binance and Coinbase.
In the announcement, Bitstamp commented on the situation by stating:
We kindly request our users to promptly execute any desired buy or sell orders involving the affected assets before August 29, 2023. After this deadline, trading activities related to AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL will be permanently disabled on the Bitstamp platform.
Though trading for these tokens will be ceased, investors can still maintain and withdraw these tokens from their accounts as desired.
It's worth noting that the SEC's allegations are, at present, just — allegations, as they haven't been validated in court. Nevertheless, other players in the fintech space, like Revolut, have also removed these tokens from their platforms dedicated to users in the US.
Established in 2011, Bitstamp holds the name of the world's oldest active cryptocurrency exchange. With a trading volume surpassing $164 million in the past day, it offers nearly 30 different cryptocurrencies for users worldwide.
The latest move by Bitstamp underscores the evolving relationship between cryptocurrency exchanges and regulatory bodies. As the US continues to define its stance on crypto assets, exchanges and traders alike will likely face more shifts in the trading landscape.
