Bitstamp to stop trading major altcoins in US

Luxembourg-based crypto exchange Bitstamp will suspend trading of seven major altcoins for US customers starting Aug. 29, 2023.

The affected cryptocurrencies include Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND), and Solana (SOL).

After Aug. 29, all trading with these altcoins will be halted.

Bitstamp clarified that while trading for these tokens will be temporarily halted, users can still retain these assets in their accounts and withdraw them as desired.

The decision follows the SEC’s recent allegations that these seven tokens are unregistered securities, as evidenced by complaints filed against major cryptocurrency exchanges such as Binance and Coinbase.

Several other fintech firms, such as Revolut, have also voluntarily delisted these tokens for US residents in light of the SEC’s litigation. Sandbox, the firm behind SAND, has begun mandating Know Your Customer (KYC) verification for staking its cryptocurrency following these events.

In total, the SEC currently alleges that 68 cryptocurrencies are securities.

Bitstamp, founded in 2011, currently offers around 30 coins and tokens for trading, with approximately $164 million worth of digital currencies traded on its platform in the past 24 hours.

This move comes as the exchange actively pursues global expansion plans and seeks new funds to scale its operations.

According to reports, Bitstamp intends to use the funds for launching derivatives trading in Europe next year, expanding into Asian markets, and enhancing its operations in the UK.