Poloniex Shuts Crypto Sales of 9 Tokens Fearing Regulatory Squeeze

By May 18, 2019 Altcoins
Click here to view original web page at www.ccn.com
Poloniex
Poloniex will delist nine tokens from its exchange. The move applies only to customers in the U.S. where there is continued uncertainty over regulations.

By CCN: Poloniex worries so much about incoming doom by U.S. securities regulators’ that it plans to delist nine tokens at the end of the month.

The altcoin exchange made the announcement Thursday.

1/ On Friday, May 29th, at 16:00 UTC, the markets for ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI, and REP will be disabled for Poloniex customers in the US. All assets remain available for trading to customers outside the US. https://t.co/eNWeZTjT5X

— Poloniex Exchange (@Poloniex) May 16, 2019

In a Medium post, Poloniex stated the delistings will happen on Wednesday, May 29th, at 16:00 UTC.

The following tokens will be disabled for U.S. customers:

  • ARDR
  • BCN
  • DCR
  • GAME
  • GAS
  • LSK
  • NXT
  • OMNI
  • REP

Customers holding balances must finalize all trades and close any positions in these assets prior to May 29. To withdraw their assets, customers must go to the balances section of their account.

Poloniex Finds U.S. Not Worth The Hassle

The decision comes as banter picks up that the U.S. Securities and Exchange Commission is readying to swoop in with stricter regulations for ICOs.

In the Medium post, Poloniex states it is committed to complying with regulatory requirements in all jurisdictions. However, the SEC’s wobbling over how to regulate the space has left many in the space, including Poloniex, in limbo.

[This] 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.

To Be Or Not To Be A Security

A chief area of complaint about the SEC has been its inability to firmly identify tokens as securities. In April, it provided some clarity when it admitted that not all ICO tokens are securities, CCN reported. In general, however, it has considered ICOs as being securities.

Poloniex was acquired by Circle in 2018. Circle’s CEO Jeremy Allaire, voiced his thoughts on the matter.

1/ @Poloniex announced today that we are geofencing some assets in the United States. We are deeply frustrated that we needed to take these steps, which are the result of an increasingly limited environment in the US for crypto assets. (See Below)

— Jeremy Allaire (@jerallaire) May 16, 2019

2/ Recent guidance from US 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.

— Jeremy Allaire (@jerallaire) May 16, 2019

While crypto-related moves at the federal level have been slow, states have been more proactive. In December, the Wall Street Journal reported that U.S. regulators had filed more than 90 cryptocurrency fraud cases since 2016.

The Texas State Securities Board has been particularly aggressive in cracking down on fake ICOs. Its most notable snare was BitConnect.

Poloniex Customers Vent

Poloniex customers took to Twitter to give their two-cents about the delistings.

Bizarro world! A world where everything is the exact opposite. Up is down, first is last, good is bad, wrong is right, white is black, logical is illogical, giving is taking, & the markets for $LSK $ARDR $BCN $DCR $GAME $GAS $NXT $OMNI $REP are disabled for Poloniex US customers pic.twitter.com/XGPYFZ5YlI

— LISK Highlights (@HighlightsLisk) May 17, 2019

SEC Finally Coming for ICOs? Poloniex Delists 9 Crypto Tokens in the US https://t.co/CVW6LQhYiJ

— Ricardo Pendergrass (@ricpendergrass) May 17, 2019

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