Bitstamp Halts Trading of Multiple Cryptos in US Citing Regulations

The oldest cryptocurrency exchange, Bitstamp is suspending the trading of multiple tokens on its platform for users in the US. In a statement issued yesterday (Tuesday), the exchange said without specifying the details that the decision was due to the recent developments in the US market.

Beginning August 29, Bistamp will suspend the trading of Axie Infinity (AXS), Decentraland (MANA), Chiliz (CHZ), Sandbox (SAND), and Solana (SOL) for the users in the US. However, the affected users can still hold or dispose of the tokens, the company said.

Holding the Tokens

"This means that as of August 29, 2023, new orders involving these assets will be disabled, and all existing orders across all these trading pairs will be cancelled," the crypto exchange explained. "However, we want to emphasize that you will still be able to hold these assets within your Bitstamp account and withdraw them any time."

Thus, the Luxembourg-based cryptocurrency exchange has urged users to execute any buy or sell orders before the deadline. According to Wednesday's announcement, after the deadline, the trading activities for the suspended tokens will be disabled.

Bitstamp, Robinhood, eToro

Bitstamp's step to suspend the tokens arrived when several companies were halting some of their crypto operations in the US due to regulatory concerns. Finance Magnates reported in June that Robinhood was delisting the tokens native to the blockchain networks Cardano, Solana, and Polygon.

Similarly, in June, the social trading platform, eToro delisted Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC). This decision was made by the company after the Securities and Exchange Commission (SEC) defined such tokens as securities in recent lawsuits against Binance and Coinbase.

The US Securities and Exchange Commission (SEC) sued Binance and Coinbase for allegedly offering unregistered securities. In the lawsuits, the regulator listed several cryptocurrencies, which it considers as securities that are offered by the crypto exchanges. Other cryptocurrency firms, including Kraken, Bittrex, and Gemini, are facing similar allegations from the SEC.