- Bitstamp suspends trading of seven altcoins for US users starting August 29, 2023.
- The suspension follows SEC allegations, suggesting these tokens might be unregistered securities.
Altcoin Storm: Bitstamp’s Bold Move Amid SEC Allegations
Cryptocurrency trading platform, Bitstamp, has stirred the crypto community with its recent announcement: Starting August 29, 2023, seven major altcoins – Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND), and Solana (SOL) – will no longer be available for trading by its US customer base.
Update for our US users 📢
Starting August 29: AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL trading will be halted after evaluating recent market developments.
Execute any open trades. Holding and withdrawing tokens afterwards will be unaffected.
More info:…
— Bitstamp (@Bitstamp) August 8, 2023
This move comes in the wake of a series of “recent developments” that Bitstamp has not detailed. However, deducing from the ongoing scenario in the crypto industry, a notable concern stands out: all these tokens are under the scanner of the U.S. Securities and Exchange Commission (SEC). The SEC suspects that these might be unregistered securities, a claim made evident in its complaints against major cryptocurrency exchanges, Coinbase and Binance.
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Bitstamp’s official statement read,
“We kindly request our users to promptly execute any desired buy or sell orders involving the affected assets before August 29, 2023. After this deadline, trading activities related to AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL will be permanently disabled on the Bitstamp platform.”
This clarifies the firm’s stance on the matter, reinforcing the importance of user action before the specified deadline.
Future Implications and Industry Reactions
Although the trading avenue will close for these tokens, Bitstamp has assured users they can retain these assets in their accounts and have the liberty to withdraw whenever they wish. This respite, however, doesn’t diminish the underlying gravity of the SEC’s allegations – which remain to be tested in court.
Bitstamp isn’t alone in its proactive stance. Other fintech establishments, like Revolut, have already delisted these tokens for US patrons, considering the ongoing SEC litigation. Post these allegations, The Sandbox, a decentralized virtual world, has mandated Know Your Customer (KYC) verification for staking its token, SAND.
For context, Bitstamp, established in 2011 with headquarters in Luxembourg, enjoys the status of being the world’s oldest cryptocurrency exchange. With about 30 cryptocurrencies in its trading portfolio, it witnessed a trading volume of approximately $164 million in the last day alone.
In an era where the intersection of decentralized assets and traditional regulatory frameworks is under the spotlight, such decisions by major platforms like Bitstamp only add to the evolving dynamics of the crypto world.
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