Key Takeaways
- Bitstamp to suspend trading of seven prominent cryptocurrencies – AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL – for customers residing in the U.S., effective August 29th
- SEC has recently classified more than 20 digital assets as securities, including the ones now suspended by Bitstamp
In a recent announcement, cryptocurrency exchange Bitstamp has revealed its decision to suspend trading of seven prominent cryptocurrencies – AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL – for customers residing in the United States, effective August 29th. While the platform didn’t explicitly state the reasons behind this move, it coincides with increasing regulatory scrutiny in the cryptocurrency space. The U.S. Securities and Exchange Commission (SEC) has recently alleged that these tokens are unregistered securities, echoing similar complaints against exchanges Binance and Coinbase.
Bitstamp has advised its U.S. customers to execute any desired buy or sell orders involving the mentioned assets before the August 29th deadline. Following this cutoff, trading activities related to these tokens will be permanently disabled on the Bitstamp platform. However, the exchange has assured users that they will still be able to hold these tokens in their accounts and withdraw them at their convenience.
This decision from Bitstamp follows closely on the heels of the SEC’s legal actions against Binance and Coinbase. The regulatory body has classified more than 20 digital assets as securities, expanding the list to encompass around 68 cryptocurrencies in total. The recent lawsuits and the SEC’s classification of certain tokens as securities have sent ripples of concern through the cryptocurrency industry, prompting exchanges to take proactive measures.
Other cryptocurrency firms have also taken similar actions in response to the SEC’s heightened focus. Notably, eToro suspended purchases of Algorand (ALGO), Decentraland, MATIC, and Dash for U.S. customers earlier this year. Similarly, Robinhood ended support for SOL, MATIC, and ADA in the wake of the regulatory pressure.
Bitstamp’s strategic decision to suspend trading of these tokens for U.S. customers coincides with its broader expansion plans. The exchange is gearing up to launch derivatives trading in Europe within the next year, expand its presence in Asian markets, and enhance its operations in the United Kingdom.
CEO of Bitstamp, Jean-Baptiste Graftieaux, confirmed that the exchange had initiated the fundraising process, with Galaxy Digital Holdings as its advisor.
