Bitstamp, a Luxembourg-based cryptocurrency exchange, has announced that it is halting trade in the US for seven cryptocurrencies classified as securities by the United States Securities and Exchange Commission (SEC). The tokens in question are AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL.
The decision comes after the SEC asserted that these tokens, among others, met the standards of a security in its legal actions against Coinbase and Binance. Bitstamp wrote that users need to execute any desired buy or sell orders involving the affected assets before August 29th, 2023. After that date, trading activities related to the seven tokens will be permanently disabled on the Bitstamp platform.
By halting the trading of these tokens for US traders, Bitstamp follows the footsteps of Binance.US and eToro. They delisted these tokens due to regulatory oversight, potential legal liabilities, and regulatory complexities.
Bitstamp’s users in the United States will need to complete all buy and sell transactions before the August 29th deadline. The suspension of these tokens was due to the ever-changing regulatory environments and the corresponding obligations they entail.
After removing these seven cryptocurrencies, Bitstamp still offers trade in 30 other cryptos, including BTC, ETH and XRP. This latest development comes shortly after Bitstamp revealed that it was raising funds to expand its operations in Asia and Europe. The crypto exchange wants to launch its derivatives trading service in Europe by 2023 and will also expand the number of markets it serves in Asia.