• As of now, 68 digital currencies are accused by the SEC of being securities.
• The exchange is now in talks to acquire additional funding, eyeing further expansion.

U.S. consumers will soon no longer be allowed to engage in trading in seven cryptocurrencies, according to the notice made on August 8. This is possibly due to recent regulatory updates by the U.S SEC.

Beginning on August 29th, Bitstamp will no longer allow users in the United States to trade Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND), or Solana (SOL).

SEC Crackdown Effects

Although the company gave no explanation for the suspension, it is possibly related to the SEC filing charges against Binance and Coinbase alleging that seven tokens traded on both platforms are unregistered securities.

As Bitstamp put it:

“We kindly request our users to promptly execute any desired buy or sell orders involving the affected assets before August 29, 2023. After this deadline, trading activities related to AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL will be permanently disabled on the Bitstamp platform.”

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Moreover, other fintech companies like Revolut have voluntarily delisted them for U.S. citizens in light of the SEC’s lawsuit against Binance and Coinbase. As of now, 68 digital currencies are accused by the SEC of being securities.

As the sector as a whole comes under more regulatory scrutiny throughout the world, the exchange is now in talks to acquire additional funding. According to the global CEO of the exchange, Jean-Baptiste Graftieaux, the firm has been actively seeking investors since late June, with guidance from Galaxy Digital Holdings and Mike Novogratz. The funds will be utilized to expand the reach of the exchange in the European and Asian regions.

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