Team Poloniex on 17 May reported that the markets for nine digital assets would be disabled for Poloniex customers in the US. The full suite is available to customers outside the US.
Poloniex informed that the following assets would be cut short to US consumers – Ardor (ARDR), Bytecoin (BCN), Decred (DCR), GameCredits (GAME), Gas (GAS), Lisk (LSK), Nxt (NXT), Omni (OMNI) and Augur (REP). This hard stop would be executed starting May 29 at 16:00 UTC. Poloniex expressed that it understood this being a difficult move for its users and the crypto ecosystem.
Poloniex echoed its sentiments as –
“We are committed to complying with regulatory requirements in every jurisdiction. Today’s action is a result of regulatory uncertainty in the US market. Specifically, it is not possible to be certain whether US regulators will consider these assets to be securities. We understand how frustrating this choice is for our customers, and for the crypto community more broadly.”
Poloniex added on the need to foster regulatory developments for crypto assets in the US and around the world. There have been many incidents of regulatory ambiguities which have resulted in legal proceedings. In a bid to prevent a backlash, Poloniex took this measure to withdraw the assets dangerously inclined towards securities. However, Poloniex acknowledged the potential and power of the nine assets stating working towards positive policies.
In April, there were reports that Poloniex would support deposits and withdrawals of Tether (USDT) on the TRON network. Poloniex would also credit the airdrop to eligible customers holding Tether. The exchange informed that there was no action that is expected from the users at the moment. Customers would be able to withdraw USDT freely to their preferred network. USDT markets on Poloniex would be unaffected.
Cryptocurrency analytics and research firm Messari had introduced two new metrics to eliminate the reports of the fake trading volume. The announcement added that the following exchanges in addition to Poloniex that had outlined lawful and significant crypto trading volumes: Binance, Bitfinex, Bitflyer, Bitstamp, Bittrex, Coinbase Pro, Gemini, itBit, and Kraken.
Poloniex wrapped up by conveying US customers holding balances in any of the nine assets need to finalize all trades and close any positions. This must be done prior to the cut-off date. The crypto asset exchange added clarity that once the geographical segregation is executed, users could withdraw the assets until its global support. Poloniex offered a link to the Balances section of the user’s account in order to withdraw conveniently.