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The cryptocurrency exchange Bittrex has revealed its intentions to block access to 32 cryptocurrencies for traders based in the United States, according to a blog post on June 7th. The changes are set to be functional from June 21st, 2019. Bittrex is a major name in the crypto sphere, responsible for operating one of the US’s premier cryptocurrency trading platforms.
The 32 markets are all set to make the transition to the Bittrex International platform. US Customers will be informed via email as to what they are and what they aren’t permitted to do with the tokens and digital coins affected by the changes. This would enable users to take the necessary steps before the affected crypto market becomes inaccessible.
What are US cryptocurrency customers expected to do before D-Day?
Customers are requested to buy or sell their tokens or coins in all markets which are accessible to them before June 21st. In addition, they can cancel and replace any orders which are open and can also withdraw their virtual assets.
Customers need to understand that after the change date, the 32 tokens/coins will not be tradable and all open orders related to them will be automatically deleted. While withdrawal and holding of these tokens is possible, this is only for as long as Bittrex international supports them.
None of these changes are applicable to non-US customers.
Bittrex International has been received as Bittrex’s Europe-based associate. Mid-March saw Bittrex canceling its initial exchange offering (IEO), which was planned to be hosted on Bittrex International (based in Malta).
The move to disallow crypto trading in the US greatly limits the market and trading abilities of US-based traders and has been received with apprehension by customers all through the United States. However, crypto exchanges can still build platforms with Bittrex technology at the core.
What caused the ban of US-based crypto traders?
This cryptocurrency news comes after a move by another U.S-based exchange, Poloniex, which looked to “geo fence” nine of its assets from American customers. This has been heralded as a sign of the unstable regulatory framework surrounding the digital assets market in the US.
Also, Poloniex’s loss of around $13.5 million dollars in the rapid crash of CLAM, a little known cryptocurrency, has undoubtedly spearheaded this move on Bittrex’s part. The large number of legal threats and hoards of disappointed customers were a result of Poloniex’s decision to divide the losses between users, even among those who were not involved directly. This might have sparked Bittrex’s desire to avoid something similar from happening.
In addition, Binance’s decentralized exchange is all set to block access of the website to users across 29 countries. All this contributes to an air of discomfort surrounding the digital assets market.
What now for the crypto exchange?
The effect of this remains to be seen, but users have enough time to take care of these digital assets. Customers have the option to keep them in their wallets without trading them, and a fair warning has been given.
It does not affect cryptocurrency traders operating outside of the United States using the Bittrex International platform. Those who are affected could sell them off before June 21st. It remains to be seen if such trades are enough to appease the US customer base.
The markets that go down on 21st are ADT, AMP, BAY, BCPT, BLOCK, BOXX, CMCT, DNT, DTA, ENG, FCT, FLDC, GO, GTO, HYDRO, IHT, ION, and LBA among others. Users better make the best of this crypto news and come up with effective strategies to arrive at a sound decision.