Major Crypto Exchange Suspends Trading of Solana (SOL) Axie Infinity (AXS), Polygon (MATIC), Chiliz (CHZ), Decentraland (MANA), NEAR, and Sandbox (SAND) -Here’s Why

• Bitstamp will suspend trading for high-value altcoins from August 29, 2023, due to regulatory pressure. 

• Bitstamp is in discussions to raise funds, eyeing derivatives trading in Europe, Asian market expansion, and UK operations enhancement.

Beginning on August 29, 2023, Bitstamp will halt the trading of a set of high-value alternative cryptocurrencies. This roster encompasses Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), NEAR Protocol (NEAR), The Sandbox (SAND), and Solana (SOL). This move by the exchange comes as a response to increasing pressure from regulators and the necessity to ensure adherence to evolving regulatory requirements.

Update for our US users 📢

Starting August 29: AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL trading will be halted after evaluating recent market developments.

Execute any open trades. Holding and withdrawing tokens afterwards will be unaffected.

More info:…

— Bitstamp (@Bitstamp) August 8, 2023

Bitstamp advised its U.S. clientele to finalize transactions involving the tokens mentioned above by August 29. The platform stated that trading from the U.S. would be “permanently deactivated” post this deadline, yet assured that American users could still withdraw and hold the specified tokens following that date.

The company opted to remove the impacted tokens due to recent occurrences and consistently evaluates the regulatory atmosphere. Although Bitstamp didn’t explicitly detail these occurrences, all the affected cryptocurrencies are assets that the U.S. Securities and Exchange Commission (SEC) recognized as securities in legal actions against Coinbase and Binance.

Coincidentally, Bitstamp will abstain from delisting certain assets mentioned in those cases Cardano (ADA), Nexo (NEXO), and Algorand (ALGO)—for reasons that remain unclear. 

Cryptocurrency Platforms Respond to Regulatory Pressure

Several other cryptocurrency platforms have removed similar tokens from their listings. Notably, Revolut, Bakkt, and Robinhood have recently delisted specific assets mentioned in the securities as mentioned in earlier cases. These platforms have all taken Cardano (ADA), Polygon (MATIC), and Solana (SOL) off their offerings.

The emphasis on these three cryptocurrencies seems to stem from their status as major assets that the SEC is actively addressing, thus making them widely supported within the market.

Each of these cryptocurrency projects has refuted the SEC’s allegations, either directly or indirectly. The company behind Cardano, IOHK, has rejected that it qualifies as a security. Meanwhile, the Solana Foundation has disagreed with the SEC’s statements, and Polygon Labs has suggested that its operations primarily took place outside the U.S., implying that they lie beyond the jurisdiction of the SEC.

Currently, the actions taken regarding the affected tokens are preventive measures. The future remains uncertain whether the SEC will extend its focus to these tokens or additional platforms.

Pursuing Financial Growth: Bitstamp’s Fundraising Endeavor

Bitstamp is currently engaged in conversations regarding the acquisition of fresh capital. This effort to secure additional funding was set in motion at the end of June and has received advisory support from Mike Novogratz’s Galaxy Digital Holdings, as disclosed by a report from Bloomberg on August 7.

Established in 2011 and currently headquartered in Luxembourg, Bitstamp has firmly established itself as the seventh-largest exchange on a global scale. With a trading volume reaching approximately $126 million, the European investment firm NXMH acquired Bitstamp in 2018.

Additionally, Bitstamp holds a license referred to as BitLicense for its American Unit, Bitstamp USA, enabling it to function within New York state. Bitstamp’s future plans encompass the introduction of derivatives trading in Europe within the upcoming year, an expansion into Asian markets, and the augmentation of its activities in the United Kingdom.

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