20 May 2019
SEC’s regulatory actions against unregistered tokens are causing an uproar in the US crypto industry. Nine of the tokens will no longer appear on the Poloniex platform, including DCR.
The crypto exchange based in the United States has announced that nine tokens will not be available on their platform.
This action was as a result of the rumors flying about SEC’s move against unregistered tokens. Many traders in the US are lamenting over these developments as they have lost nine tokens which they usually trade. Meanwhile, there is diverse opinion as to whether the crypto tokens should be affected by the upcoming securities regulations.
Poloniex’s announcement about delisting nine crypto tokens came as a shock on Thursday, 16, May 2019. We think they are taking a proactive step to prepare for SEC actions. According to reports, the exchange has doubts about the capability of the nine tokens to survive the SEC’s scrutiny. The result is that the exchange is depriving its customers in the US the options to trade on diverse tokens. From what we gathered, the nine tokens include BCN, GAS, ARDR, GAME, OMNI, DCR, LSK, NXT, and REP. These cryptos will not be accessible to US customers starting from the 29th of May. However, customers who trade outside the United States will have access to all the assets.
Also, we learned that the traders in the US can still withdraw their assets from the exchange. That is as long as these assets are still on the platform.
Already, US traders are not happy about these actions which the exchange is taking. However, other big shots in the industry are also frustrated by this recent development. Take, for instance, the Circle Chief Executive Officer, Jeremy Allair, has expressed his frustrations at such decisions by the exchange. However, he blames it all on the restrictive crypto regulations coming up from SEC in the US. Let’s recall that Circle acquired the exchange in 2018. So, this action is a cause for concern to them.
Is Allaire the only one condemning the U.S crypto regulatory policies regarding ICOs as securities? The answer is no. Some United States Congressmen are making moves to pass an Act against these upcoming actions. The “Token Taxonomy Act” would exclude cryptocurrency tokens from being part of the securities that will face the regulations.
Although the Congressmen wants to remove Crypto tokens from being securities, the Commission is insisting otherwise. According to the SEC, most of the ICOs in the US are securities.
Even though we are expecting a change of plans, the commission has gone ahead to carry out their attacks. Right now, many unregistered ICOs have been fined and some arrested by SEC depending on the case against them. We are also getting reports that there will be a terrible attack on more unlicensed ICOs soon.
These events are getting mixed reactions from the crypto community. While some argue that it will affect many exchanges decisions and strategies, others lament about the regulations affecting trading options. However, Bitcoin continues to win the hearts of institutions and individual traders.
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