Poloniex Stops Offering 9 Cryptocurrencies To U.S. Customers Citing Regulatory Uncertainty
Poloniex, one of the leading cryptocurrency exchanges in the world, has announced that it will no longer offer its U.S-based customers access to nine crypto assets.
According to the company’s Medium post, these assets will not be available for customers in the United States: Ardor (ARDR), Augur (REP), Decred (DCR), Bytecoin (BCN), GameCredits (GAME), Lisk (LSK), Gas (GAS), Nxt (NXT), and Omni Layer (OMNI).
The highly regulated Circle-owned crypto exchange said that it will not allow customers from the U.S. to purchase the listed assets because of regulatory concerns.
The exchange noted that there is a lot of uncertainty surrounding these tokens and that it is possible U.S. regulators could move to declare the assets as securities.
The platform wrote in its blog post:
“It is not possible to be certain whether US regulators will consider these assets to be securities.”
According to Poloniex, its customers in the United States who hold balances in the nine tokens on the exchange “must finalize all trades and close any positions in these assets prior to May 29.” The trading restrictions will be effective as from May 29.
Customers will continue to withdraw the delisted cryptocurrencies from their wallets as long the exchange offers it globally.
The exchange’s non-U.S. customers will, however, continue to access and buy these tokens.
Massachusetts-based payments technology firm Circle acquired the crypto exchange Poloniex in February last year. The company may have determined that some of the assets did not have sufficient regulatory documentation that would allow it to continue offering them to users within the U.S. market.
Poloniex tweeted CEO Jeremy Allaire’s comment on the decision to stop offering the assets, noting that the exchange is “deeply frustrated” that it had to geofence some assets.
But Allaire added that Poloniex had to take the steps due to the “increasingly limited environment” crypto assets operate in within the United States.
The U.S. Securities and Exchanges Commission (SEC), has previously been very categorical that exchanges should ensure regulatory compliance when offering these assets.
In April, SEC advisor Valerie Szczepanik helped to develop a framework that they said would assist crypto market participants to determine if a given digital asset qualified as an investment contract and thus a security.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.