Crypto exchanges are starting to clean house.
In news out today, Poloniex announced that they would be removing margin trading for any and all US based customers.
They also stated that they would be removing wallets for 3 altcoins:
- GNO (Gnosis)
- AMP (Synereo)
- EXP (Expanse)
Poloniex said that they would be removing these coins and disabling margin trading in order to ensure that the exchange complies with regulatory requirements, although they did not specify exactly what requirements they were referring to.
More about it can be found here:
If you recall, Poloniex was purchased by Circle for roughly $400 million back in February.
Circle is backed by Goldman Sachs.
They aren't the only ones cleaning house.
(Source: https://support.bittrex.com/hc/en-us/articles/360012536412-Here-We-Go-Rolling-Out-More-USD-Pairs)
I received an email from Bittrex this morning informing me that they would be removing wallets for 3 coins as well:
- BTS (Bitshares)
- BTG (Bitcoin Gold)
- BTCP (Bitcoin Private)
It wasn't immediately clear why they were removing these 3 coins, but it had something to do with no markets being available for them.
There are many fans of bitshares here on steemit, so this is potentially very big news to many readers on this platform.
More about it can be found here:
https://support.bittrex.com/hc/en-us/articles/360001391586
I expect this is just the beginning.
I am guessing this is just the beginning of cryptocurrency exchanges doing what is needed to do in order to be compliant with US securities laws.
If they do not, they may end with the same fate as 1Broker:
https://steemit.com/crypto/@jrcornel/sec-shuts-down-1broker-are-other-exchanges-next
Over time this will end up being a good thing as much of the waste gets cleansed from the system.
However, it may get worse before it gets better in the short term though, especially if a couple well-known coins get removed from large exchanges.
And, even worse would be if a large and popular exchange went the way of 1Broker...
Things are being cleaned up though, brace for impact folks.
Stay informed my friends.
Image Source:
https://coinjournal.net/payment-app-circle-buys-crypto-exchange-poloniex/
Follow me: @jrcornel