Poloniex Crypto Exchange Closes Nine Markets to US-Based Traders
The two-week deadline ended for a handful of digital coins and tokens, from now on banning US traders from trading pairs of ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI, and REP.
On Wednesday, May 29, as of 16: 00 UTC, Poloniex will close a handful of markets for US-based traders. The reason for the partial delisting is the uncertainty surrounding the regulatory status of those assets (and whether they are securities), as Poloniex aims to continue as a fully compliant exchange.
The assets, announced in mid-May, include:
- Ignis (ARDR)
- Bytecoin (BCN)
- Decred (DCR)
- GameCredits (GAME)
- GAS (GAS)
- Lisk (LSK)
- Nxt (NXT)
- Omni (OMNI)
- Augur (REP)
The US Securities and Exchange Commission has contributed to uncertainty surrounding multiple digital asset projects. The above assets are problematic, for either being used to secure ‘dividends’, or being related to betting, as in the case of REP and possibly GAME.
“US customers holding balances in ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI, and REP on Poloniex must finalize all trades and close any positions in these assets prior to May 29th. Once geofenced, customers will be able to withdraw these assets from their wallet for as long as we support the asset globally,” Poloniex stated earlier.
Upon the delisting deadline, Poloniex sided with the Kik project on the Defend Crypto initiative, a drive to mount a lawsuit against the SEC regarding the security status of the KIN token.
The Defend Crypto site has so far raised more than the targeted $5 million in various cryptocurrencies, and may help spark a deeper discussion on the legal status of digital coins and tokens.
Poloniex has refrained from new mass delistings for months now, as the exchange has removed most of its low-liquidity coins and tokens. Volumes on the exchange hover around $40 million in 24 hours, a low activity in comparison to Binance or other Asian exchanges, where the free trading of most assets leads to volumes above $2 billion in 24 hours.