Poloniex Will Delist LSK in U.S. Due To Uncertain Regulations
The well-known exchange Poloniex has announced that it will delist 9 assets for the U.S. market due to uncertain regulations. Among the affected coins, we can also find LSK.
1/ On Friday, May 29th, at 16:00 UTC, the markets for ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI, and REP will be disabled for Poloniex customers in the US. All assets remain available for trading to customers outside the US. https://t.co/eNWeZTjT5X
— Poloniex Exchange (@Poloniex) 16 maggio 2019
The news was announced Thursday, May 16th with a post on Medium and a series of tweets. The currencies affected are: Ardor (ARDR), Bytecoin (BCN), Decred (DCR), GameCredits (GAME), Gas (GAS), Lisk (LSK), Nxt (NXT), Omni Layer (OMNI) and Augur (REP). Poloniex, therefore, invited all its users living in the United States to finalize all negotiations and to close any position in these activities no later than May 29th.
Poloniex had drawn attention in early 2018. when came out the news that the exchange had been acquired by Circle, which has Goldman-Sachs among the main financiers. According to Fortune, Circle paid $400 million for the acquisition.
As mentioned above, the cause would seem to lie in the uncertainty caused by the regulatory gaps which are still part of the US legislation on cryptocurrencies. Specifically, Poloniex cannot be certain whether U.S. lawmakers will consider these assets to be securities.
This decision would appear to have been caused by fears raised by a recent statement by Valerie Szczepanik, Senior Advisor of the U.S. SEC (as we already mentioned in this article). We recall that she warned the crypto exchanges located in U.S. that in case they want to start IEOs, they will first have to apply for licenses.
Currently, Poloniex is the only exchange in the United States that has taken this decision, but we cannot exclude that other platforms operating on American soil may also apply such restrictions.
At the moment it does not seem that the news had great repercussions in the market, as there are no notable drops in the price of the involved currencies.
There should be no relevant consequences for Lisk, because in Poloniex the LSK/BTC pair worths only about $200.000, equivalent to about 2.7% of the global LSK volume on exchanges. LiskHQ team reassured its users with a tweet, specifying that their token can still be exchanged by Poloniex users outside the United States and that their legal team is already working to resolve the issue.
2) Our token will still be available for trading to @Poloniex users registered and located outside the US. We are working to resolve this with our legal team and receive proper classification for #LSK. We will update our community as soon as we have more info.
— Lisk (@LiskHQ) 17 maggio 2019