US-based crypto exchange 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.
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— 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 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.”