The United States has long been hailed as the 'Land of the Free,' but for those entrenched in the crypto world, particularly Bitcoin enthusiasts, that freedom seems to have limits. Late last week, the Seattle-headquartered Bittrex announced new restrictions. Bittrex U.S. users of Bittrex will soon find they can't access a range of cryptocurrencies, highlighting local regulatory bodies' intentions of tightening control or maintaining a firm stance on the burgeoning crypto sector.
Bittrex Blocks 32 Crypto Assets
In a blog post published On Friday, Bittrex, renowned for its focus on altcoins and existing within the bounds of regulation, declared it would cease to permit U.S.-based traders to deal in 32 different digital assets. crypto exchange While many of these cryptocurrencies are not household names, the list includes coins like QTUM, STORM, GO, and ENG, which were quite popular during the 2017 and 2018 ICO craze. cryptocurrencies From June 21st, these coins will no longer be tradable on Bittrex for users in the U.S., but they will remain available on Bittrex International— the company's venture based in Europe catering to individuals outside the U.S.
Customers are allowed to withdraw or keep the affected tokens/coins in their Bittrex wallets for as long as Bittrex International supports the trading of these tokens/coins. Notably, there was no mention of direct regulatory constraints from the SEC in the announcement.
This wave of restrictions follows shortly after a similar initiative by Circle's comprehensive exchange platform, which influenced a different set of digital currencies.
For customers of Poloniex, yet another exchange, cryptocurrencies such as Ardor (ARDR), Bytecoin (BCN), Decred (DCR), Gamecredits (GAME), Neo's GAS, Lisk (LSK), NXT, OMNI, and Augur's REP will no longer be accessible to U.S.-based investors. Poloniex In an unexpected twist, Binance has been required to restrict U.S. users, along with more than two dozen other countries, from using its decentralized exchange website. Users can still conduct transactions through Binance using wallets and outside service providers, just not via the main website. This move might stem from the repercussions faced by EtherDelta in 2018, where fines were levied for facilitating unregistered securities trading. previous reports from Blockonomi Instances of 'geo-blocking' or 'geo-fencing' don't necessarily imply direct government mandates but reflect the increasing difficulties within the U.S. regulatory environment for cryptocurrencies. Indeed, when Poloniex decided to delist certain coins for the U.S. market, the Goldman Sachs-supported exchange remarked:
'Today's adjustments are driven by the ambiguous regulatory landscape in the U.S. Specifically, there is uncertainty about whether U.S. authorities will classify these tokens as securities.'
U.S. Regulatory Scene Heating Up
Indeed, the SEC has increased its focus on cryptocurrencies, a sector previously less scrutinized throughout 2017 and early 2018. Last week, the financial watchdog announced plans to sue Kik, a Canadian social media entity responsible for the well-known $100 million ICO, KIN.
The SEC's contention is that Kik conducted unregistered securities offerings under U.S. law. There are allegations that the KIN ICO was designed to 'make a significant profit,' citing Kik's unprofitable social platform with no apparent ambitions for monetization.
In a related development, Jay Clayton of the SEC has reiterated his concerns over approving a Bitcoin ETF during a conversation with CNBC. He cited ongoing worries regarding Bitcoin's custody and potential market manipulation, contrasting with Bitwise's assertion of the market's readiness. revealed Where the SEC will focus next is unclear, but indications suggest a strategy of targeting lesser-known projects before tackling more prominent players within the digital currency ecosystems.
As a seasoned writer in the cryptocurrency domain since 2013, my perspectives have been featured in key industry outlets such as LongHash, NewsBTC, and Decrypt. When not engaging in writing, I contribute to the EXODUS unit of HTC, a technology company in Taiwan. I own a modest collection of Bitcoin. You can reach me at [email protected].
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