Poloniex Crypto Exchange Delists Nine Crypto Tokens For US Customers

Poloniex crypto exchange announced the delisting of nine crypto tokens for traders in the United States. The decision comes after the incoming reports on regulation against unregistered security tokens which we are reading more about in our latest cryptocurrency news.

According to a Medium post from May 16, Poloniex crypto exchange announced that they will stop offering nine crypto tokens to their U.S customers. The announcement explains further that there was increase uncertainty whether the regulators in the country will qualify such tokens as securities. The options remain split whether the regulations should be applied to all crypto tokens.

An excerpt from the announcement reads:

‘’On Wednesday, May 29th, at 16:00 UTC, the markets for ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI, and REP will be disabled for Poloniex customers in the US. All assets remain available for trading to customers outside the US.’’

Traders in the United States that are affected by the decision will be able to withdraw their funds from the exchange as long as the platform continues to list the same on the platform. Jeremy Allaire, the CEO of Circle expressed deep frustration at the decision calling it a ‘’restrictive’’ US crypto regulation. Circle acquired Poloniex back in 2018.

However, a group of US Congressmen showed their support for Allaire and are now trying to pass the Token Taxonomy Act which will exempt crypto tokens from the definition of securities. The US SEC, on the other hand, has maintained that most ICOs are securities. The regulator has initiated a crackdown on unlicensed crypto security offerings with multiple arrests.

This decision could also affect other exchange platforms as mentioned in the altcoin news that already has increased adopted horizontal strategy. Critics say that the real growth in the market will hinge for a more vertical approach that will prioritize the quality of the tokens that are offered. This situation could lead to the extinction of many crypto tokens as predicted by Bitwise’s Matt Hougan and Digital Currency Group’s Barry Silbert.

In the same time, Bitcoin is winning the hearts of traders and institutions. Since the start of the year, many major players such as Microsoft, TD Ameritrade and Fidelity Investments have shown affection for the number one cryptocurrency.