Crypto wallet platform Abra on Thursday announced that it would restrict its services for its US-based clients due to regulatory barriers.
The company informed its customers that it would migrate all digital currencies other than Bitcoin, Ether, Litecoin, and Bitcoin Cash to a native hosted wallet solution.
“As a result of continued regulatory uncertainty and restrictions in the United States, we have to make some adjustments to our US business in an effort to continue to be compliant and cooperative with US regulations as they currently exist,” Abra stated.
“As a part of this effort, we are migrating any synthetic assets to a native hosted wallet solution.”
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Scaling down of offering list as a preventive measure
The crypto platform further stated that its US-based clients would no longer be able to hold QTUM, BTG, EOS, OMG, and SNT tokens on the platform after August 29.
“US users holding positions in these crypto assets will have to exchange or withdraw their investments from Abra by 11:59 PM EST on August 29, 2019. After that date, any remaining balances in those assets will be converted to Bitcoin in the app,” Abra noted.
The restrictions are even more strict for New York-based clients as they can only store four digital currencies – Bitcoin, Bitcoin Cash, Ether, and Litecoin – on Abra wallets.
“New York residents will need to transfer or sell any synthetic holdings by 11:59 PM EST on August 29, 2019. After that date, all remaining balances in those assets will be shown as Bitcoin in the app. Additionally, Abra users from New York will no longer be able to use bank ACH, wire or American express card for deposit/withdraw after Aug 29th, 2019,” the announcement detailed.
Earlier this year, crypto exchange Poloniex delisted 9 coins from its offering list to US clients, citing regulatory uncertainties.