Poloneix, the cryptocurrency exchange has declared that from May 29, 2019, they would stop providing the nine cryptocurrency tokens in the U.S. based consumers because of unresolved regulations, as per the blog post published on May 16.
The nine tokens that would be stopped from May 29 are Ardor (ARDR), Bytecoi (BCN), Decred (DCR), game credits (GAME), Gas (GAS), Lisk (LSK), Nxt (NXT), Omni Layer (OMNI), and Augur (REP). The U.S. consumers have the time till then to “finalize all trades and close any positions in these assets” before the token becomes stopped. Consumers will still be able to extract their money as long as the crypto exchange still provides them on a multinational level.
The CEO and Co-founder of Circle stated,
“We are deeply frustrated that we needed to take these steps, which are the result of an increasingly limited environment in the U.S. for crypto assets. Recent guidance from the U.S. 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 main cause of the closing of these nine tokens are unresolved regulations in the cryptocurrency market, the firm clarifies on the situations stating,
“We are committed to complying with regulatory requirements in every jurisdiction. Today’s 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.”
The United States jurisdiction cannot resolute on the legal degree of virtual currencies. Currently, Valerie Szczepanik, the SEC’s virtual currency advisor usually known as “Crypto Czar” stated that stages that registered IEO (Initial Exchange Offering) tokens for a few perhaps have been the cause of Securities Law violation.