HomeNewsExchange NewsBitstamp Suspends Trading for 7 Cryptocurrencies in the US

Bitstamp Suspends Trading for 7 Cryptocurrencies in the US

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In a move that reflects the evolving landscape of cryptocurrency regulation, American consumers are bracing for restrictions on trading seven prominent digital assets. The announcement, released on August 8th, hints at the influence of recent regulatory adjustments initiated by the US Securities and Exchange Commission (SEC).

Bitstamp Takes Action: Tokens Affected and Suspension Details

Effective August 29th, Bitstamp, a significant player in the cryptocurrency exchange realm, will curtail trading access for users based in the United States. The list of affected tokens includes Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND), and Solana (SOL).

Impacts of the SEC Crackdown

Despite the SEC’s crackdown, Bitstamp has not explained this trading suspension. The regulator recently charged Binance and Coinbase with dealing in unregistered securities for seven tokens.

Bitstamp’s statement stressed that users must trade these tokens by August 29, 2023. Bitstamp confirmed that trading the aforementioned tokens will be permanently disabled after this date.

Broader Consequences and Voluntary Delistings

The impact of the SEC’s heightened scrutiny on the cryptocurrency market is reverberating beyond Bitstamp. Fintech entities like Revolut have proactively chosen to delist the flagged tokens from their offerings to US citizens. Currently, the SEC has identified 68 digital currencies that are subject to regulatory scrutiny as potential securities.

Navigating through this intricate regulatory landscape, Bitstamp finds itself at a pivotal juncture. The exchange is actively pursuing avenues of funding to fortify its operations in the face of evolving regulations. Jean-Baptiste Graftieaux, the company’s Global CEO, began actively seeking investors in late June, drawing on advice from Galaxy Digital Holdings and Mike Novogratz.

Immersed in crypto since '18. Crafting insightful crypto news and analysis for Coinzene. Bridging the knowledge gap with every piece I pen. Your go-to writer for all things crypto.


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