Bitstamp, an old and renowned cryptocurrency exchange, has recently announced to suspend trading of seven cryptocurrencies. Once suspended, they would no longer be available for customers within the US, and the decision would be put into effect on Aug 29 this year. The tokens to be suspended include Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND), and Solana (SOL). The recent announcement has highlighted that the decision was made as a result of the ongoing developments within the crypto space.
Update for our US users 📢
Starting August 29: AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL trading will be halted after evaluating recent market developments.
Execute any open trades. Holding and withdrawing tokens afterwards will be unaffected.
— Bitstamp (@Bitstamp) August 8, 2023
However, Bitstamp did not highlight the exact reason for suspending trading of these seven cryptocurrencies, but it is believed that the decision was put into effect as a result of the increased crackdown by the SEC. The regulator has deemed these cryptocurrencies to be unregistered securities in its lawsuits against major crypto exchange giants that include Binance and Coinbase.
Bitstamp further urged its users to immediately execute buy and sell orders before August 29 before trading is permanently suspended on the platform. Despite trading for 7 altcoins coming to a permanent halt soon, it would still be possible for users to hold and withdraw these tokens from their accounts at any time.
Bitstamp Vows to Remain Strong
The allegations made by the SEC have not been proven true in the courts of law so far. As a result of greater uncertainty and fears of falling victim to the SEC’s actions, several other firms have also delisted alleged securities for US residents. At the same time, the Sandbox has also started to mandate the Know Your Customer Verification for SAND staking following the SEC’s unpredictable actions.
The suspension of seven cryptocurrencies would eventually result in the creation of a void, but Bitstamp has reassured its users that more than 30 cryptocurrencies, along with XRP would remain available for trading. Moreover, the exchange has also highlighted how its dedication to adaptability, as well as compliance, remains firm.
Bitstamp was founded back in 2011 and has earned itself the title of being the world’s oldest cryptocurrency exchange. Despite the announcement of the decision, the user base seems to be unfazed as digital assets worth more than $164 million were traded on the crypto exchange within the previous 24 hours.