Crypto Struggle Continues in the US as Poloniex Decides to End Trading of Nine Coins Due to Regulations

Cryptocurrency Exchange Poloniex announced on Friday that it would stop trading of nine cryptocurrencies, for US citizens. In a blog post on Medium, the exchange said that the decision is a result of certain regulations which prevent these tokens from serving in the US. In its official statement, the US-based exchange said,

We are committed to complying with regulatory requirements in every jurisdiction. Today’s action is a result of regulatory uncertainty in the US market. Specifically, it is not possible to be certain whether US regulators will consider these assets to be securities.

The affected nine cryptocurrencies are Ardor (ARDR), Bytecoin (BCN), Decred (DCR), GameCredits (GAME), Gas (GAS), Lisk (LSK), Nxt (NXT), Omni Layer (OMNI), and Augur (REP). However, trading of these tokens will be unaffected and continue for customers outside the United States. The exchange further stated that despite the measures, it was fully committed towards the development of cryptocurrencies in the country.

The deadline for closing accounts on the customers holding the mentioned tokens is May 29. Holders of these coins need to finalize their trades and transfer their assets to other platforms. The news comes weeks after the Token Taxonomy Act, 2019 was introduced in the US Congress.

Cryptocurrencies across the globe have always been at the receiving end of strict regulations, resulting in huge losses to businesses. Countries like China and India have particularly been nightmares for the crypto markets, as regulatory restrictions made many businesses to shut operations completely. However, the US was considered to be liberal in this regard until recently.

Recently, US Congressman Brad Sherman termed Bitcoin and other cryptocurrencies as a potential threat to the US Dollar, which could severely affect the country’s influence on international politics. Also, business tycoon and Master of Investment, Warren Buffett criticized digital tokens for being useless and compared it to the button of his suit in terms of limited usability.