Poloniex Exchange today announced that it will disable the trading of nice cryptocurrencies which included Lisk [LSK], Ardor [ARDR], Bytecoin [BCN], NXT, Augur [REP], Game Credits [GAME], Ehtereum Gas [GAS], ONMI, Lisk (LSK) and Decred [DCR] in the United States.
From 29th May 2019, the above-mentioned coins will be delisted for its US customers. The Exchange, however, also announced that the currency wallets (Sending and Receiving) still be active for all customers.
Poloniex Exchange currently has 61 cryptocurrencies listed on its platform. The fact that it chose nice cryptocurrencies out of so many suggests a specific regulatory roadblock with these currencies. The CEO of Circle, Jeremy Allaire, which is the parent company of Poloniex Exchange said in a tweet,
Recent guidance from US regulators on what crypto assets would be deemed securities has led to these actions. We don’t agree that they should be considered securities but need to ensure we are in compliance with US law.
Most of these currencies are highly popular among traders and have been in the market for quite some time. Augur (REP), Lisk, NXT, and Ardor are quite famous cryptocurrencies among traders. Decred [DCR], Augur[REP], Lisk [LSK] and Bytecoin [BCN] are in the top 50cryptocurrenices w.r.t to total market capitalization.
Allaire also noted that US regulatory crack-down and the significant volume of the traders from US would set negative precedence of some cryptocurrencies more than the others. He said,
For many crypto assets, classification as a security under the US law would effectively destroy its utility. We need to come up with ways to enable the utility
The specific reason for the restriction hasn’t been announced yet. However, it also raises fears of ‘geofencing’ of other cryptocurrencies as well given the regulatory environment is changing in the US.
What is the reason for delisting these cryptocurrencies? Please share your views and discovering with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com