Poloniex Stops Trading On Nine Assets for US Citizens
By Mark Lemon – Cryptocurrency Expert
According to a blog post that was published on May 16th, major crypto exchange Poloniex will no longer offer nine types of coin to US customers because of uncertainty regarding regulations.
From May 29th and onwards, Poloniex will no longer be trading the following coins; Bytecoin (BCN), GameCredits (GAME), Ardor (ARDR), Decred (DCR), Lisk (LSK), Omni Layer (OMNI), Gas (GAS), Nxt (NXT), and Augur (REP). As a result, US users will no longer be able to buy and sell cryptocurrency native to these blockchains but will remain for customers outside the US.
Poloniex claims they were pushed into this decision due to the country’s uncertain with regulation in the US. The exchange has stated they are not able to know whether the US will class these assets as securities which will bring far greater regulation. Selling Bitcoin and selling crypto in the US is currently unregulated providing it isn’t a security token.
The legal status of cryptocurrencies in the US remains uncertain at the moment. It was reported by Valerie Szczepanik of the U.S. Securities and Exchange Commission (SEC), that platforms looking to charge a fee to list initial exchange offering (IEO) tokens, could incur regulatory issues. Szczepanik has suggested that platforms that are not registered, have a US issuer/buyer or they are operating on the US market could face regulatory hurdles.
The SEC had published a framework that was developed by Szczepanik and commissioner Bill Hinman in early April. This was designed to help market participants determine whether a digital asset should be considered an investment contract and whether it is a security or not before they look to cash out Bitcoin for the token.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards