[2019-05-20] Poloniex delists 9 cryptos for U.S. traders, they may be securities

[bbc.reporter]

What about Ripple and Stellar? I reckon they are the easiest among all cryptcoins listed in Poloniex to be classified as securities controlled by a centralized organization that issues Ripple and Stellar tokens to their partnered banks and other financial institutions.

There is a double standard occuring in this corrupt system.



Poloniex, which was acquired by major payments provider Circle back in February 2018, will no longer be offering U.S. customers trading for the following cryptos: Ardor (ARDR), Bytecoin (BCN), Decred (DCR), GameCredits (GAME), Gas (GAS), Lisk (LSK), Nxt (NXT), Omni (OMNI), and Augur (REP).

The decision is apparently being made after guidance from regulators. Circle is still actively lobbying for crypto assets to be treated differently to more traditional types of asset, but it can't guarantee that this will happen.

According to the exchange's statement, "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".

Read in full https://www.chepicap.com/en/news/9760/poloniex-delists-9-cryptos-for-u-s-traders-as-they-may-be-securities.html

[CryptoBry]

The decision is apparently being made after guidance from regulators. Circle is still actively lobbying for crypto assets to be treated differently to more traditional types of asset, but it can't guarantee that this will happen.

What is obvious here is that Poloniex has no choice but to bow down to the wishes of the authorities in the meantime that there is no clear regulatory definition for what is a security in the cryptocurrency space. As to how they arrived at the conclusion for these coins to get delisted, maybe they should tell us more. As to XRP and Stellar, maybe they decided that these two are too big to get delisted and those coins in the list are already enough to please regulators. Of course, we should not be surprised of any double standards here as it can happen anytime anywhere and on many situations.

[davis196]

Running a cryptocurrency exchange platform under US jurisdiction is a pain in the a$$.
Crypto trading platforms are servants to the SEC and they have to obey to every rule,it doesn't matter if it's right or wrong.I'm not advocating on those coins,but the lack of regulatory clarity leads to big loss.

[IconFirm]

Poloniex is an absolute joke of an exchange - the amount of shitcoins/shitokens they are listing is proof enough of this, but their customer support is also a shambles.

There is a double standard occuring in this corrupt system.

This is so true & is what happens when corrupt institutions like Circle/JP Morgan get involved in crypto, greed is the only motivation for them.

BTW - SYS is also delisted, not that I'm surprised after their involvement with the Peermountain scammers & the amount of censorship going on with that coin, plus the $12+ million deficit BCF (BlockChain Foundry) have racked up in the last few months:

https://bitcointalk.org/index.php?topic=4748031.msg50010161#msg50010161

Disclaimer: This is not a stake.com shitpost.

[veleten]

double standards is the name of the game!
they delist 9 coins quoting: "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"
do US regulators consider any other cryptocurrencies as securities?
or they just preemptively complying ?
as for Ripple read this: https://www.theblockcrypto.com/tiny/ripples-quarterly-reports-understated-xrp-released-from-escrow-by-84-million/

"According to Coin Metrics, the number of XRP released from escrow has been underreported in two quarterly market reports. The total difference between the reported figures in quarterly reports for Q3 2018 and Q1 2019 and on-chain data equals 200 million XRP (approximately $84 million)."

[buwaytress]

Not that I'll be shedding any tears over those coins (shocked that I actually used to have Lisk haha) but Polo, dear, why not just come clean and tell us why exactly youbdelisted them? Never mind that Ripple, as pointed out by our lovely forumsters, should be most obvious in the lineup for knocking off, but come on, when did you ever worry about having inadvertently offered securities, what about all those already sold?

I'd like to get a reimbursement on them tokens bought circa 2017. Oh but wait, you haven't answered my support tickets from circa 2017 =(

[roosbit]

If you are going to list any coin that comes your way for the $$$$, this is what happens especially if you are now considered a second class exchange...someone needs to pay their bills !
All this pressure makes me think these guys need to re-brand for the sake of their public image as soon as possible!

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.

This is a familiar line and they should know better that the US market is a no go. Well if you are to survive in this industry and you in it for the money you need to risk it sometimes especially when the competition is high, this action from poloniex isn't jaw dropping either!

[vit05]

That is not a problem with Poloniex. People are talking like that they have made a mistake or something. They are only following the us law. Probably all the others exchanges that operate in Us will have to make the same. Bittrex has created the international version to scape this rule.

[gentlemand]

I'm not familiar with most of those coins, but NXT's sole purpose for the past few years seems to have been to distribute other coins and have an empty pump while they're at it. That sounds rather security-esque to me.

Am pretty amazed Poloniex is still so shit and appears to be largely unchanged since its acquisition. It doesn't reflect well on its new owners.

[IconFirm]

Am pretty amazed Poloniex is still so shit and appears to be largely unchanged since its acquisition. It doesn't reflect well on its new owners.

Oh I dunno. Seeing as the owners are a bunch of corrupt, power crazy, greedy, money grabbing banksters I think it reflects perfectly....lol

[gentlemand]

Oh I dunno. Seeing as the owners are a bunch of corrupt, power crazy, greedy, money grabbing banksters I think it reflects perfectly....lol

That's as maybe, but Circle.com was a superb service and support was near instant the couple of times I had a problem. It looks like they're leaving Poloniex to rot. I presume they have a grand plan that they're not rolling out until far in the future and it's effectively placeholding for now.

[bbc.reporter]

@IconFirm. Agreed. Tristan D'Agosta must be laughing his way all the way to the bank when he sold Poloniex the Dying to Circle hehehe. Also, the exchange is very slow in times of high trading activity and the support staff are very incompetent and slow.

I thought this would change after Circle's takeover.

[Slow death]

when they ignore the problems of their customers, it just proves they are not afraid of regulators and now they are delists 9 cryptos because they are afraid of US regulators? Why did not I see Bittrex take the same action? according to this:

Bittrex Incorporated
800 5th Avenue
Ste. 4100
Seattle, WA 98104-3100
Customer Support

bittrex are also from the USA and:

https://international.bittrex.com/Market/Index?MarketName=BTC-LSK

https://international.bittrex.com/Market/Index?MarketName=BTC-ARDR

https://international.bittrex.com/Market/Index?MarketName=BTC-DCR

aI have not seen them take the same action

[BitHodler]

Tristan D'Agosta must be laughing his way all the way to the bank when he sold Poloniex the Dying to Circle hehehe.

I'm sure he does. $400 million for an exchange that lost its whale traders to Bittrex is an absolute joke. Circle very likely bought it with the intention to make Poloniex reach its glory days as top exchange.

Poloniex was the shit during the rise of Ethereum. It easily did 100k BTC just on its BTC/ETH pair, and the rest of the coins they had listed did over 100k BTC combined in volume on top of it.

Over 200k BTC in volume per day means a shit ton of fee income. These guys must be sitting somewhere on an island drinking tequilas all day, and I can't blame them for doing so. Circle rekt itself there.

[bbc.reporter]

@Slow death Bittrex International is the version of the exchange that is for its customers outside the U.S. I reckon they might have already did their research and the legal work to know that the SEC cannot shut it down.

@Bitholder. Bittrex also lost its whales to Binance hehehe.

[bbc.reporter]

Bittrex has now also released a list of banned cryptocoins in the US of its own. However, none of the coins in Poloniex's list are in it.



The following markets will transition to Bittrex International on June 21, 2019.

ADT   CMCT  GO   MFT   QRL   XEL
AMP   DNT   GTO   MOBI   QTUM   XNK
BAY   DTA   HYDRO   NLC2   RFR
BCPT    ENG    IHT   NMR   STORJ
BLOCK     FCT   ION   PRO   STORM
BOX      FLDC   LBA   PTOY   SWT
 
Source https://bittrex.zendesk.com/hc/en-us/articles/360028996652

[joniboini]

Bittrex has now also released a list of banned cryptocoins in the US of its own. However, none of the coins in Poloniex's list are in it.

Is there different government guidance or what? Or did Bittrex try to adjust it on their own?

It looks funny to see two exchange in the US didn't agree on what coins could be considered as securities. Still, they both agree XRP is not securities.

[bbc.reporter]

@jonoboini. I reckon each exchange itself and the vip traders and investors who were holding those coins in them, have already dumped them, is the reason for the difference of their lists hehehe.

[figmentofmyass]

Bittrex has now also released a list of banned cryptocoins in the US of its own. However, none of the coins in Poloniex's list are in it.

Is there different government guidance or what? Or did Bittrex try to adjust it on their own?

It looks funny to see two exchange in the US didn't agree on what coins could be considered as securities. Still, they both agree XRP is not securities.

different legal counsels, different interpretations of the law. there's a lot of grey area with so-called "utility tokens" especially with the SEC offering "no action" relief to let teams prove their tokens aren't securities. since none of this stuff has been fought out in court yet (no precedent), it's all up to individual legal teams to determine how to best mitigate their clients' risk. i worked at a law firm for a few years......every lawyer's got a different opinion on everything. and they all think they're right.

[bbc.reporter]

@figmentofmyass. You make it appear practicing law is a scam hehehe. Maybe the law was designed by people to scam other people. All full of loopholes and traps if you know what you are doing.