Leading cryptocurrency exchange, Poloniex said in an announcement today that it will stop U.S customers from trading the following nine cryptocurrencies, ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI, and REP.
The reason for barring U.S customers from these tokens, according to Poloniex, is new regulatory concerns regarding whether the tokens fit in as securities under the U.S securities law. Specifically, the exchange said in line with our earlier reports that it “is not possible to be certain whether US regulators will consider these assets to be securities.”
Therefore rather than risk the wrath of the law, Poloniex reiterated its commitment to supporting positive policy and regulatory developments for crypto assets in the US and around the world.
U.S customers holding balances in the tokens mentioned above were urged to finalize all trades in them before May 29 while they will have the opportunity to withdraw funds either now or for as long as the exchange supports the token for other users. In other words, Poloniex is only ending support in these tokens for U.S customers but will enable trading for users outside the U.S.
Meanwhile, the latest move by Poloniex marks another story in the already endless tale of crypto startups struggling to align their offerings with regulatory requirements set forth by the U.S Securities and Exchange’s Commission (SEC).
Although supposed guidance exists regarding when tokens could count as securities, the dynamic nature of cryptocurrencies mean that the regulations are not supreme.
In a recent report, we even quoted SEC official, Valerie Szczepanik as saying that the latest buzzword of the crypto industry, that is, Initial Exchange Offering (IEO) could still breach U.S securities law.