Crypto users in the United States have been served another blow as Bitstamp officially terminates US customers’ access to trade several tokens on its platform following the US Securities and Exchange Commission’s (SEC) rampage on the crypto industry.
Bitstamp Restricts US Customers From Trading Key Altcoins
Bitstamp, a European cryptocurrency exchange firm, has announced its intention to permanently restrict the trading of particular tokens for customers residing in the United States on its exchange platform.
The decision comes when the crypto industry faces intense regulatory scrutiny from the SEC and other bodies. Bitstamp’s effort to protect itself and align with the evolving regulatory trends while preserving a peaceful trading environment has ultimately catalyzed its decision to limit US customers’ access to specific tokens on its platform.
The affected tokens include a combination of renowned and emerging cryptocurrencies with a fair amount of value and exposure. Bitstamp revealed will prevent its US users from trading cryptocurrencies, including Decentraland (MANA), Near (NEAR), Axie Infinity (AXZ), Solana (SOL), Chiliz (CHZ), Polygon (MATIC), and The Sandbox (SAND).
The exchange has stated that it will officially prohibit US users from accessing these seven major altcoins on its platform from August 29, 2023.
Bitstamp has urged its US users to initiate all their trading and liquidations before August 29 as the crypto exchange company stated that after the deadline, the above tokens will be permanently deactivated on the platform, and users with these tokens cannot sell or trade on the platform.
Additionally, the seven tokens to be disabled on the Bitstamp platform are all tokens labeled as securities by the SEC. The decision to terminate US users’ access to these tokens raises questions about Bitstamp’s possible withdrawal from US crypto markets and the impact of SEC scrutiny on the broader cryptocurrency industry.
Expanding To European Markets With New Funding
The news of Bitstamp terminating access to several tokens for its US customers follows a recent report which revealed Bitstamp’s plans to broaden its market reach by migrating to newer and potentially more crypto-friendly markets in Europe.
Bitstamp’s Chief Executive Officer, Jean-Baptiste Graftieaux, recently confirmed that the company was raising funds to facilitate its expansion into fresh global markets in Asia and the United Kingdom. Crypto experts have hinted that the unexpected change could be attributed to the recent SEC investigations on cryptocurrencies in the US.
In 2021, Bitstamp reported having 1.63 million US customers, which was 36% of its global user base. However, with the SEC aggressively advancing on cryptocurrencies in the US, it’s not unsurprising that the crypto exchange has begun looking for safer and more crypto-friendly markets to offer their trading services.
Several crypto exchange platforms and cryptocurrencies have fallen victim to SEC cases, including Coinbase and Binance. Additionally, several fintech companies and exchanges like Revolut have taken a similar route as Bitstamp and begun planning to move to more regulatory-friendly markets after halting services in the US.
Market cap remains at $1.143 trillion | Source: Crypto Total Market Cap on Tradingview.com
Featured image from Bitnation, chart from Tradingview.com