Poloniex Stops Trading On Nine Assets for US Citizens

By Mark Lemon – Cryptocurrency Expert

According to a blog post that was published on May 16th, major crypto exchange Poloniex will no longer offer nine types of coin to US customers because of uncertainty regarding regulations.

From May 29th and onwards, Poloniex will no longer be trading the following coins; Bytecoin (BCN), GameCredits (GAME), Ardor (ARDR), Decred (DCR), Lisk (LSK), Omni Layer (OMNI), Gas (GAS), Nxt (NXT), and Augur (REP). As a result, US users will no longer be able to buy and sell cryptocurrency native to these blockchains but will remain for customers outside the US.

Poloniex claims they were pushed into this decision due to the country’s uncertain with regulation in the US. The exchange has stated they are not able to know whether the US will class these assets as securities which will bring far greater regulation. Selling Bitcoin and selling crypto in the US is currently unregulated providing it isn’t a security token.

The legal status of cryptocurrencies in the US remains uncertain at the moment. It was reported by Valerie Szczepanik of the U.S. Securities and Exchange Commission (SEC), that platforms looking to charge a fee to list initial exchange offering (IEO) tokens, could incur regulatory issues. Szczepanik has suggested that platforms that are not registered, have a US issuer/buyer or they are operating on the US market could face regulatory hurdles.

The SEC had published a framework that was developed by Szczepanik and commissioner Bill Hinman in early April. This was designed to help market participants determine whether a digital asset should be considered an investment contract and whether it is a security or not before they look to cash out Bitcoin for the token.

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