The major cryptocurrency exchange Bittrex has recently revealed that it will block US-based customers from trading 32 different cryptocurrencies. This change is slated to take effect as soon as on June 21st of this year.
Bittrex will block US users from 32 cryptos starting June 21st
Specifically, this news comes from Bittrex’s own blog. The exchange made the announcement in a blog post, noting that certain markets will “no longer be accessible to US customers”.
With that said, however, the affected cryptocurrencies will still be available on Bittrex International, for non-US customers. Some of the most notable coins Bittrex will block are QTUM, ENG, STORJ, MFT and FCT.
All in all, 32 different cryptocurrency coins will “transition” to Bittrex International on June 21st. As such, this change will come into effect quite quickly. US customers will, according to Bittrex, receive an email with further guidance on what they can do with their affected coins and tokens.
Although the US customers will be able to sell affected tokens or coins before June 21, they will not be able to do so following this date. Moreover, they are currently able to cancel (or cancel-or-replace) orders on Bittrex, as well as withdraw their assets from Bittrex.
However, this will not be the case after June 21st. In fact, Bittrex states that following June 21st, US customers will bear unable to interact with any of the affected tokens and coins on Bittrex. Nonetheless, Bittrex states US customers “may withdraw or continue to hold” affected coins in their Bittrex wallet, as long as these coins have support by Bittrex International.
Regulatory uncertainty may be the answer
This decision is, of course, somewhat controversial. However, Bittrex is trying to quell any rumors that this might mean that Bittrex is leaving the US altogether. On its website, Bittrex writes this as an answer to whether the company will leave the US:
“Bittrex is proud to be a U.S. Digital Asset Trading Platform. U.S. customers will have access to a more limited number of markets as compared to what Non-U.S. Customers have on the Bittrex International platform. Like other industry participants, we will continue to advocate for laws and regulations that foster innovation.”
Bittrex does not state a specific reason as to why the company is going to block these 32 coins. Nonetheless, this follows a similar move by the US-based exchange Poloniex, which “geo-fenced” 9 assets from American clients.
What’s more, the Binance DEX website recently announced it would begin to block US users starting July 1st. It is widely believed that these efforts to block US users from cryptocurrency exchanges is due to regulatory uncertainty.
Last week saw the SEC sue the social messaging firm Kik for its 2017 ICO. Several experts have pointed to this as “rocking the boat”, and creating increased regulatory uncertainty for firms operating in the US. As such, it may be due to this crypto companies are now restricting their US operations.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.