Luxembourg-based crypto exchange Bitstamp will halt trading seven major altcoins for US users starting August 29, 2023.
The affected coins include Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND), and Solana (SOL).
Despite the trading suspension, Bitstamp clarified that customers can still hold and withdraw these assets from their accounts. The SEC recently labeled these tokens as unregistered securities, aligning with complaints against major crypto exchanges like Binance and Coinbase, leading to legal action.
Following the SEC’s actions, other fintech firms, including Revolut, have voluntarily removed similar coins for US residents. Sandbox, creator of SAND, has now introduced Know Your Customer (KYC) identification for coin staking.
Reportedly, the SEC classifies 68 cryptocurrencies as securities. Bitstamp, founded in 2011, offers around 30 coins and tokens for trading. Traders exchanged nearly $164 million worth of digital currencies on the platform within the last day.
The exchange intends to expand internationally and secure funding for scaling its operations, focusing on Asian markets, European derivatives trading, and enhancing UK operations.
