Bitstamp Suspends Trading for Seven Altcoins for U.S. Users
Cryptocurrency exchange Bitstamp announced that it will permanently suspend trading for several altcoins for its U.S.-based users starting from August 29, 2023. The affected assets include Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), NEAR Protocol (NEAR), The Sandbox (SAND), and Solana (SOL). Bitstamp, established in 2011, is the longest-standing crypto exchange. The exchange did not provide specific reasons for the suspension but hinted at the SEC’s move to classify these tokens as unregistered securities in its complaints against Binance and Coinbase.
Key Points:
- Bitstamp will halt trading for seven altcoins for its U.S.-based users from August 29, 2023.
- The suspended assets include AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL.
- The exchange did not disclose the reasons behind the decision but referred to the SEC’s classification of these tokens as unregistered securities.
- Users can still hold and withdraw the affected tokens from their accounts.
- Bitstamp has a framework in place to evaluate cryptocurrencies based on the regulatory environment.
Hot Take: Bitstamp’s decision to suspend trading for these altcoins reflects the increasing regulatory scrutiny faced by cryptocurrency exchanges in the United States. The SEC’s actions against Binance and Coinbase have created ripple effects in the industry, prompting exchanges like Bitstamp to reevaluate their offerings. While the suspension may inconvenience U.S.-based users, they still have the option to hold and withdraw the affected tokens. This move highlights the importance of staying informed about regulatory developments and their impact on the crypto market.
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