Bitstamp suspends trade for seven SEC-flagged tokens

Key takeaways

Bitstamp has halted trading of AXS, CHZ, MANA, MATIC, NEAR, SAND and SOL for traders in the United States.

The exchange made the decision as the tokens are flagged by the US SEC as securities.

Bitstamp halts trading of MATIC, six others 

Luxembourg-based Bitstamp announced on Tuesday that it is halting trade in the US for seven cryptocurrencies classified as securities by the United States Securities and Exchange Commission (SEC). 

According to the cryptocurrency exchange, the trading of AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL will no longer be supported on its platform starting August 29th. 

The tokens are the native cryptocurrencies of Axie Infinity, Chiliz, Decentraland, Polygon, Near Protocol, The Sandbox, and Solana. 

This latest cryptocurrency news comes after the SEC asserted that these tokens, among others, met the standards of a security in its legal actions against Coinbase and Binance. 

Bitstamp wrote that;

“To ensure a smooth transition during the trade halt, we kindly request our users to promptly execute any desired buy or sell orders involving the affected assets before August 29, 2023. After this deadline, trading activities related to AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL will be permanently disabled on the Bitstamp platform.”

Bitstamp follows Binance.US’s footsteps

By halting the trading of these tokens for US traders, Bitstamp follows the footsteps of Binance.US and eToro. 

These exchanges delisted these tokens due to regulatory oversight, potential legal liabilities, and regulatory complexities. 

Bitstamp’s users in the United States will need to complete all buy and sell transactions before the deadline. 

According to Bitstamp, the suspension of these tokens was due to the ever-changing regulatory environments and the corresponding obligations they entail.

After removing these seven cryptocurrencies, Bitstamp still offers trade in 30 other cryptos, including BTC, ETH and XRP. 

This latest development comes shortly after Bitstamp revealed that it was raising funds to expand its operations in Asia and Europe. The crypto exchange wants to launch its derivatives trading service in Europe by 2023 and will also expand the number of markets it serves in Asia.