Bitstamp exchange announced on Tuesday that it will suspend trading in the United States for seven cryptocurrencies classified as securities by the US Securities and Exchange Commission (SEC).
The Luxembourg-based exchange will end crypto trading support for AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL, which will be cut off as of August 29th.
The digital assets are used as native cryptos for Axie Infinity, Chiliz, Decentraland, Polygon, Near Protocol, The Sandbox, and Solana.
The latest news comes following an SEC ruling that these coins, among others, fall under securities laws following legal actions against both Binance and Coinbase.
“To ensure a smooth transition during the trade halt, we kindly request our users to promptly execute any desired buy or sell orders involving the affected assets before August 29, 2023. After this deadline, trading activities related to AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL will be permanently disabled on the Bitstamp platform.”
Bitstamp follows Binance.US
In doing so, Bitstamp has followed in the footsteps of BinanceUS and eToro, both of which delisted the assets due to regulatory scrutiny, legal liabilities and other potential entanglements.
Bitstamp users in the US must end all buying and selling activity by the cut-off date.
According to Bitstamp, suspending the assets was a choice brought on by the constantly changing regulatory landscape and commitments involved in the US.
The SEC has been accused of taking a heavy-handed ‘regulation by enforcement‘ attitude against the cryptocurrency space, all the while rejecting every Spot Bitcoin ETF application for years. Accusations of foul play have made their way to the SEC chairman, Gary Gensler, who has been on the receiving end of scrutiny from market participants, fellow employees and the US senate house.
Bitstamp currently offers 30 cryptocurrencies, including BTC, LTC, and ETH, notwithstanding the removal of these seven.
The development comes shortly after the exchange revealed it was raising funds to increase operations in Europe and Asia. The exchange is looking to launch a derivatives trading service in Europe in 2023, and is set to expand in a number of markets in Asia.
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