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Bittrex Set to Stop Its US-based Users from Using 32 Coins After Poloniex Crashed

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Bittrex

Bittrex, a US-based crypto exchange has announced that it will stop its US users from trading 32 crypto coins. The firm made this announcement on June 7, noting that this change will be effective starting June 21.

The list of coins that will be inaccessible by US customers includes,

 QTUM, STORJ, ADT, AMP, BAY, BCPT, BLOCK, BOXX, CMCT, DNT, DTA, ENG, FCT, FLDC, GO, GTO, HYDRO, IHT, ION, LBA, MFT, MOBI, NLC2, NMR, PRO, PTOY, QRL, RFR, STORM, SWT, XEL and XNK.

Bittrex posted this notice just a day after Poloniex’s non-US customers lost $13.5 million to a flash crash. The coin behind this massive loss is known as clams (CLAM). Following CLAM’s sudden crash, Poloniex decided to distribute the loss among its clients, even the ones that had not invested in the coin. As a result, the exchange had to face legal threats and a lot of dissatisfied customers.

According to a report, Bittrex does not have a direct connection with Poloniex. However, the exchange’s reaction could have been inspired by the need to prevent something similar from happening to its US clients.

US-based Users Can Keep the Blacklisted Coins on the Exchange, But Can’t Use Them

Starting June 22, all of Bittrex’s US-based users will not be able to buy or sell the blacklisted coins on the exchange. Bittrex unveiled that it would cancel all orders that are made involving the 32 coins.

Since US customers cannot trade the coins on the exchange, Bittrex offered them two solutions.

These are,

  • Selling the blacklisted coins for assets that are still usable on the exchange before June 21
  • Moving the coins off the exchange

Per the official announcement,

U.S. Customers may withdraw or continue to hold in their Bittrex wallet affected Tokens/Coins for as long as Bittrex International supports a market in those Tokens/Coins.

The exchange added,

U.S. Customers will be sent an email communication from Bittrex that provides guidance on what they can and cannot do with their affected Tokens/Coins in connection with this change before an affected market is no longer accessible.

This news comes after Bittrex canceled its planned initial exchange offering (IEO) just 24 hours before its launch. Reportedly, there was a controversy surrounding RAID, the firm whose tokens would have been sold in the IEO.

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A publication unveiled that Binance DEX would introduce Geographical restrictions to 29 countries including the US. Reportedly, the Malta-based crypto exchange did not give any reason for introducing this change. The restrictions will be effective starting July 1 this year.

Do you think Bittrex’s decision to bar its US-based users from accessing certain coins will affect crypto adoption in the country? Let us know in the comments below.

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