Bitstamp to Temporarily Halt Trading of Prominent Altcoins for US Customers

In a strategic move that reverberates across the cryptocurrency landscape, Bitstamp, a prominent cryptocurrency exchange, has unveiled plans to temporarily halt trading for a selection of significant altcoins for customers based in the United States. Effective August 29th, trading in the following seven cryptocurrencies – AXS, Chiliz (CHZ), MANA, MATIC, NEAR, SAND, and SOL – will be temporarily suspended for U.S. users, a decision influenced by “recent developments” as per the announcement made on August 8th.

While the specifics behind these “recent developments” were not explicitly mentioned, the chosen altcoins have been swept into the broader regulatory discourse involving the U.S. Securities and Exchange Commission (SEC). In complaints targeting crypto exchanges like Binance and Coinbase, the SEC has asserted that these seven tokens, among others, could potentially qualify as unregistered securities. Bitstamp’s statement highlights the imminent suspension, 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.”

It’s noteworthy that while trading activities might cease, Bitstamp assures users that they will still be able to retain and withdraw these tokens from their accounts at their convenience. However, it’s important to underline that the SEC’s allegations against these specific tokens are yet to be established within the legal framework. Nevertheless, the evolving regulatory environment has spurred proactive measures across the industry. Notable players like Revolut have voluntarily delisted these tokens for U.S. residents in the wake of the SEC’s legal action against Binance and Coinbase.

Bitstamp, which dates back to its founding in 2011 and is currently headquartered in Luxembourg, boasts the distinction of being the world’s oldest cryptocurrency exchange. Boasting a diverse array of around 30 coins and tokens available for trading, the platform has facilitated roughly $164 million worth of digital currency trades within the past 24 hours.

As the regulatory landscape continues to shape the trajectory of the cryptocurrency market, Bitstamp’s move to temporarily suspend trading for these prominent altcoins among its U.S. user base underscores the need for vigilance and responsiveness within the industry’s players.

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