Gate.io Joins Other Exchanges to Restrict US Traders
After Binance, Bittrex, Poloniex, and other markets set limitations to the activity of US-based traders, Gate.io joins the list with restrictions.
Gate.io, one of the smaller exchanges carrying niche coins and tokens, is restricting a series of markets for US customers. The cutoff date for trading those assets is June 30, and US-based traders are urged to move their funds as soon as possible.
The list of assets includes leading coins like Ripple’s XRP and EOS, but also tokens and other assets offering payouts. The reason for this is that digital assets that pay out a form of a dividend may be considered securities. This means that the NEO and GAS assets are now banned for US-based investors, as well as Ontology (ONT) and its reward token, ONG.
QTUM, WAVEX, and NEM (XEM) are also out of reach for traders, though those platforms simply offer a utility token. Still, Gate.io has chosen to be on the safe side.
Tezos (XTZ) is also taking another hit, as the asset is also seen as dividend-bearing based on the “baking” process. US-based buyers were also barred from the ICO, as the XTZ pre-mainnet asset had an uncertain status. The Tezos project claimed that “tezzies” were an act of goodwill, comparable to goodie bags, but the XTZ coin on the mainnet offers a certain payout if the user stakes the coins.
TRON (TRX) was also the biggest surprise. Bytecoin, CNYX, Decred (DCR) and others were added to the list.
The removal of assets for US buyers happens at a time when dollar-based investments in Bitcoin (BTC) were picking up again. But this time, US-based investors may be hampered in their effort to invest directly in altcoins and tokens. During the peak of the bull market in 2017, most assets were accessible. With the increased pressure of the US Securities and Exchange Commission, US buyers are restricted from general token trading, as well as initial exchange offerings (IEO).
Recently, Bittrex and Poloniex cut the selection of coins and tokens for US buyers. Almost all tokens offering staking, rewards, or having an uncertain general status, are suspect for being considered unregistered securities. The hawkish stance of the US SEC against the Kik token, KIN, led to a lawsuit for selling a token deemed to work as a security.