Poloniex to Delist 9 Coins in the US, Cites Regulatory Uncertainties

US-based crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Poloniex has announced that it is going to stop trading services with nine digital currencies for its US-based clients, citing uncertainty in regulations.

The exchange will terminate the trading services of these coins - Ardor (ARDR), Bytecoin (BCN), Decred (DCR), GameCredits (GAME), Gas (GAS), Lisk (LSK), Nxt (NXT), Omni Layer (OMNI), and Augur (REP) - on May 29 and asked the customers to close all positions before the deadline. However, customers of the exchange outside the United States can still trade these tokens.

“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 exchange noted.

2/ 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.

— Poloniex Exchange (@Poloniex) May 16, 2019

The industry needs proper regulations

The legal status of digital currencies in the United States is still uncertain. Though last month the Securities and Exchange Commission (SEC) published a set of guidelines defining the Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and many in the community criticized that the regulator only documented the known facts without providing any specific insights.

US-based crypto companies are also pushing for proper policies around cryptocurrencies. Finance Magnates earlier reported that crypto-related laws have become a priority for fintech lobbyists in the country.

“We need policies that encourage development and use and the creativity of technologists and builders all around the world. We will continue to push for rules specific to digital assets globally,” Poloniex stated on Twitter.

“Crypto and digital asset innovation will continue, but without a new regulatory environment, people and businesses in the US may not be able to participate in these transformative technologies. We will continue to advocate for changes to US law and regulations.”