Market Cap:
$334.6B
BTC Dominance:
59.14%
btc:
$11160.00
eth:
$312.28
xrp:
$0.47
Advertise
Regulation

Why did Bittrex block US clients from trading 32 cryptos

Samson Ononeme | Jun. 10, 2019
Why did Bittrex block US clients from trading 32 cryptos

The cryptocurrency trading platform Bittrex blocks US Clients from trading 32 cryptos. According to the decision announced on June, 7, users will still be able to store and withdraw all the coins listed on the platform. What could be the reason for this decision?

June 10, 2019, | AtoZ Markets -  US-based cryptocurrency exchange Bittrex will no longer allow its US-based clients to trade in 32 different cryptocurrencies after June 21st. The exchange will lose access a slew of coins listed on the exchange, including Quantum (QTUM) and Storj (STORJ). According to the report, an email containing more detailed instructions over the new rules will be sent to all customers before the change goes into effect.

"U.S. Customers will be sent an email communication from Bittrex that provides guidance on what they can and cannot do with their affected Tokens/Coins in connection with this change before an affected market is no longer accessible." 

The announcement came just a day after non-US-based users on another US-based crypto exchange, Poloniex, lost a total of $13.5 million due to a flash crash in a little-known cryptocurrency, Clams (CLAM).

 Bittrex blocks US Clients

After deciding to socialized the loss (distribute it among its users, even those who were not directly involved), Poloniex has found itself in the midst of a slew of legal threats and dissatisfied customers.

While there is no known direct connection between the two exchanges, it’s possible that Bittrex’ decision to block the assets was motivated by a desire to prevent something similar from happening to its US users.

Assets can stay on the exchange, but can’t be used

In any case, Bittrex users will no longer be able to buy or sell the coins on Bittrex’ blacklist as of June 22nd. Open orders involving these assets will be canceled.

Bittrex suggested in the announcement of the blocking that affected users could sell the blocked coins for assets that will stay available to them or move them off the exchange.

Bittrex did say that the forbidden assets will at least be able to stay on the exchange as long as they are supported by the non-US arms of the exchange:

"U.S. Customers may withdraw or continue to hold in their Bittrex wallet affected Tokens/Coins for as long as Bittrex International supports a market in those Tokens/Coins.  Non-U.S. Customers will be able to access those markets that continue to be listed on Bittrex International. "

This announcement is coming just a day after non-US customers on another US-based crypto exchange, Poloniex, lost a total of $13.5 million due to a flash crash in a little-known cryptocurrency, Clams (CLAM).

After deciding to socialized the loss (distribute it among its users, even those who were not directly involved), Poloniex has found itself in the midst of a slew of legal threats and dissatisfied customers.

While there is no known direct connection between the two exchanges, it’s possible that Bittrex’ decision to block the assets was motivated by a desire to prevent something similar from happening to its US users.

Bittrex blocks US Clients may be due to regulatory restrictions and controversy

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 official 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.”

No specific reason has been given as to why Bittrex blocks US clients from access to these 32 coins. However, this isn’t the only recent incidence of a major cryptocurrency exchange placing restrictions on US-based users. Notably, Malta-based cryptocurrency exchange Binance also announced the decision to block access to the exchange to the users from 29 countries, including the U.S. 

Earlier this year, Bittrex canceled what would have been its first-ever IEO following controversy around the company whose tokens would have been sold.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.