Cryptocurrency market regulations in the US are surely drawing out a clear distinction between the cryptocurrencies it wishes to allow. Binance announced a significant shift of its operations in the US from the original Malta-based exchange to a domestic Binance Exchange in the US.
While the move seems trivial at the moment, the reason for the shift itself raises apprehensions for some cryptocurrency investors.
Recently, after Poloniex decided to restrict some crypto-tokens on its Exchange for its US customers. Now, Bittrex International is doing to same. Moreover, the number of coins delisted for US users on Bittrex is more significant than Poloniex.
Notably, while the list is comparatively long, it does not include a few coins delisted by Poloniex like Augur (REP), Ardor (ARDR) and Lisk (LSK) which will continue to trade on Bittrex.
The exclusion process from the Exchange is possibly influenced by new securitization laws to be imposed in the US with the release of Facebook’s cryptocurrency, Globalcoin/Libra on the horizon. Binance has not listed the coins that will be included on the US platform, which is expected to be released before 12th September when trading will stop for US customers. Nevertheless, a lesser number of cryptocurrencies can be expected from the ones available on the Exchange.
The US is the largest economy in the world, which usually sets a precedent for other countries as well. Hence, the securitization laws in the US which are expected to be applied by the SEC inevitably influence reforms in other countries as well. The cryptocurrency market is maturing and is up for an upgrade. Hence, the regulatory watchdogs will be looking to eliminate high risk and ambiguous projects from their economy.
Do you think that the altcoin markets will be filtered for good or the new laws will destroy the crypto0markets? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist 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