Many prominent faces in the crypto-community have been advocating changes in US law and regulations for the effective inclusion of cryptocurrencies in the financial realm. However, in yet another blow to the crypto-world, regulatory uncertainty in the US market has led to the delisting of nine cryptocurrencies from the leading exchange, Poloniex.
The platform announced that it was disabling trading services for nine crypto-assets; Ardor [ARDR], Bytecoin [BCN], Decred [DCR], GameCredits [GAME], Gas [GAS], Lisk [LSK], Nxt [NXT], Omni Layer [OMNI], and Augur [REP] from May 29 for its US user base.
The exchange however, clarified that the assets would be supported for customers outside the country. The platform revealed that the lack of clarity in the country’s cryptocurrency regulations precipitated the delisting. Poloniex, on its official Twitter handle, posted that it was uncertain whether US watchdogs would consider the aforementioned altcoins to be securities.
Poloniex was acquired by Circle, a leading payment provider platform, in February 2018. Following Poloniex geo-fencing the assets in the US region, Jeremy Allaire expressed his “frustration” in a series of tweets, calling out the country’s growing “limited environment” for digital assets. He stated,
“Recent guidance from US regulators on what crypto assets would be deemed securities has led to these actions. We don’t agree that they should be considered securities but need to ensure we are in compliance with US law.”
The CEO further asserted that simple classifications such as security, commodity or currency, did not apply to digital assets, which are a new class of “financial instruments.” He stated,
“We need policies that encourage development and use and the creativity of technologists and builders all around the world. We will continue to push for rules specific to digital assets globally.”
He asserted that classifying certain crypto-assets as a security under US law would “destroy its utility.” Allaire also urged the community to plan out ways to “enable the utility of digital assets, while guarding against potential investor protection risks like fraud and thefts.”
Referring to the underlying technology as “transformative,” Allaire stated that the lack of clarity on the legal status of cryptocurrencies would obstruct the participation of people and businesses in the US.
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