Decentralized crypto exchange Bancor has decided to cut access to its trading services for US-based clients.
In the official announcement on June 18, the Zug-registered company cited the uncertainty in the US crypto laws as the reason behind this strong decision.
“US citizens, domiciliaries or users from US IPs will no longer be able to use Bancor’s web application, https://www.bancor.network, to convert tokens,” the announcement noted. “This decision has been made in light of increased regulatory uncertainty; at this time, we believe this is the most judicious decision for all the members of our ecosystem.”
According to the company, this step will help it “to innovate faster and with greater clarity.”
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The company also clarified that any clients, who have been identified as a US citizen and not staying in the country, cannot use its trading services, while people from overseas staying in the US can still trade on the platform.
However, Bancor users from the US can still access the blockchain.
“We would like to clarify that this functionality will be blocked to users accessing the website bancor.network, which offers an interface to blockchain activity. As the Bancor Liquidity Network is a collection of smart contracts on the blockchain and a non-custodial system, we cannot restrict users from accessing the blockchain itself. This cannot be blocked,” the announcement noted.
Its high time for clear regulatory laws
The uncertainty over crypto laws is forcing major companies to terminate their services in the country. Binance, one of the largest crypto exchanges in terms of trading volume, recently blocked access to its main website for the US-based traders. However, the company is launching a dedicated crypto-to-fiat exchange in the country.
Last month, another US-based crypto exchange, Poloniex, delisted nine digital currencies from its trading platform for only US-based clients, citing the same unclear regulations.