Bitstamp to suspend trading of major altcoins for US users
All the soon-to-be suspended tokens are alleged by the SEC to be securities in its lawsuit against Coinbase and Binance.
Cryptocurrency exchange Bitstamp will suspend trading of Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND), and Solana (SOL) for customers residing in the U.S. beginning August 29.
According to the Aug. 8 announcement, trading of the seven aforementioned cryptocurrencies will soon become unavailable for trading for U.S. customers due to “recent developments.” While the firm did not specify the reason for their suspension, all seven tokens are alleged by the U.S. Securities and Exchange Commission to be unregistered securities in its complaints against cryptocurrency exchanges Binance and Coinbase. Bitstamp wrote:
“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.”
Although trading will soon be halted, Bitstamp says users can still hold the seven tokens in their accounts and withdraw them at anytime. The SEC’s allegations against the tokens have not yet been proven in a court of law. However, other fintech firms, such as Revolut, have voluntarily delisted them for U.S. residents amidst the SEC litigation against Binance and Coinbase. The Sandbox had also begun mandating Know Your Customer verification for SAND staking after the event. The SEC currently alleges that 68 cryptocurrencies are securities.
Founded in 2011 and now headquartered in Luxembourg, Bitstamp is currently the world’s oldest cryptocurrency exchange. The platform offers around 30 coins and tokens for trading. Approximately $164 million worth of digital currencies were traded on Bitstamp in the past 24 hours.
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
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