The SEC claims that all of the soon-to-be-suspended coins are securities in its complaint against Coinbase and Binance.
Bitstamp, a stalwart of the cryptocurrency market, is getting ready to halt trading for a number of well-known tokens for its American customers, a decision that is sure to cause a stir. Recent events have caused Bitstamp to take a firm stance, which has resulted in this suspension, which is effective as of August 29th.
Bitstamp’s Cryptocurrency Selection Under Scrutiny
Seven well-known cryptocurrencies, including
- Axie Infinity
- Chiliz (CHZ)
- Decentraland
- Polygon
- Near
- Sandbox and
- Solana, will be affected by Bitstamp’s decision. The action is not only noteworthy, but it is also cloaked in mystery because the exchange avoided getting into the facts of what caused the suspension. The U.S. Securities and Exchange Commission (SEC) has asserted that each of these tokens is an unregistered security. This claim has lately given rise to legal battles involving prominent exchanges like Binance and Coinbase.
Related: Revolut US to Delist ADA, MATIC and SOL in September, Citing Regulatory Concerns
Trading Cessation and the Future of the Affected Tokens
By asking its customers to take quick action before August 29, 2023, Bitstamp has set the stage for a significant deadline. After this time, trading in Axie Infinity, Chiliz, Decentraland, Polygon, Near, Sandbox, and Solana on the Bitstamp platform will be permanently disabled. The exchange guarantees users that they will still be able to keep these tokens in their accounts and withdraw them whenever they want, notwithstanding the impending halt in trade.
Update for our US users 📢
— Bitstamp (@Bitstamp) August 8, 2023
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:…
The narrative around these currencies is being played out in the context of current SEC lawsuit, which has prompted some fintech companies to take preventative action. Bitstamp’s position reflects the cautious and regulated environment of the cryptocurrency market, even though the claims made against these currencies have not been legally proven.
Bitstamp’s suspension is a demonstration of the complex dance that takes place in the world of digital finance between innovation and compliance as the SEC makes its position on the classification of tokens as securities clear.
Related: Bakkt follows Robinhood, eToro in delisting major altcoins
Bitstamp, a company established in 2011 with headquarters in Luxembourg, made a crucial move at this point in its development. The oldest cryptocurrency exchange in the world, Bitstamp, boasts a sizable user base and trading volume, allowing transactions totaling almost $164 million in digital currency during the course of the previous day. This most recent development reflects the industry’s broader evolution as it struggles to meet the changing regulatory requirements while working to provide users with cutting-edge financial solutions.