Poloniex Shuts Crypto Sales of 9 Tokens Fearing Regulatory Squeeze

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May 18, 2019

By CCN: Poloniex worries so much about incoming doom by U.S. securities regulators’ that it plans to delist nine tokens at the end of the month.

The altcoin exchange made the announcement Thursday.

In a Medium post, Poloniex stated the delistings will happen on Wednesday, May 29th, at 16:00 UTC.

The following tokens will be disabled for U.S. customers:

  • ARDR
  • BCN
  • DCR
  • GAME
  • GAS
  • LSK
  • NXT
  • OMNI
  • REP

Customers holding balances must finalize all trades and close any positions in these assets prior to May 29. To withdraw their assets, customers must go to the balances section of their account.

Poloniex Finds U.S. Not Worth The Hassle

The decision comes as banter picks up that the U.S. Securities and Exchange Commission is readying to swoop in with stricter regulations for ICOs.

In the Medium post, Poloniex states it is committed to complying with regulatory requirements in all jurisdictions. However, the SEC’s wobbling over how to regulate the space has left many in the space, including Poloniex, in limbo.

[This] action is a result of regulatory uncertainty in the US market. Specifically, it is not possible to be certain whether US regulators will consider these assets to be securities. We understand how frustrating this choice is for our customers, and for the crypto community more broadly. We believe in the power and potential of these assets, and will continue to focus time and energy on supporting positive policy and regulatory developments for crypto assets in the US and around the world.

To Be Or Not To Be A Security

A chief area of complaint about the SEC has been its inability to firmly identify tokens as securities. In April, it provided some clarity when it admitted that not all ICO tokens are securities, CCN reported. In general, however, it has considered ICOs as being securities.

Poloniex was acquired by Circle in 2018. Circle’s CEO Jeremy Allaire, voiced his thoughts on the matter.

While crypto-related moves at the federal level have been slow, states have been more proactive. In December, the Wall Street Journal reported that U.S. regulators had filed more than 90 cryptocurrency fraud cases since 2016.

The Texas State Securities Board has been particularly aggressive in cracking down on fake ICOs. Its most notable snare was BitConnect.

Poloniex Customers Vent

Poloniex customers took to Twitter to give their two-cents about the delistings.

This article was edited by Samburaj Das.

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