Gate stopped providing multiple currency transactions to the US. EOS and XRP are no exceptions. Is there a big deal?

Since May, mainstream exchanges such as Poloniex, Bittrex and Gate.io have stopped offering multi-currency trading services to US users. In the announcement of Gate.io, we even saw EOS, XRP, TRN, BTM and other familiar projects. Is there a major regulatory trend, or is it just a normal compliance operation?

Compliance

Image source: Picpedia

Gate.io announced today that based on the assessment of the US attorney team, Gate.io will stop providing recharge and transaction services for US users in the following currencies starting from June 30: CNYX, EOS, XRP, TRX, XTZ, BTM, NAS, QTUM, NEO, GAS, XMR, BCN, XEM, WAVES, DCR, ONT, ONG, THETA, and TFUEL.

Babbitt contacted the Gate.io CPO on this matter. The wine said:

“American lawyers are primarily targeting projects that have previously had ICO behavior and are currently unable to determine whether they will be defined as securities by the SEC.”

Gate.io also pointed out in the announcement that it will continue to provide trading services for US users in multiple currencies such as BTC, LTC, BCH, BSV, ETH, and GRIN. Obviously, these currencies do not involve ICO at all, and there is no dispute about securities like XRP.

In fact, the crypto exchange Bittrex issued an official announcement on June 8 that some markets will no longer be open to US customers since June 21. The market for 32 tokens such as ADT, CMCT, GO, QTUM will be transitioned to Bittrex International on June 21, 2019. The cryptocurrency exchange Poloniex even earlier announced on May 17 that it would stop offering nine cryptocurrency transactions to US users: ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI, REP, for the sake of these generations. Currency may be defined as securities by US regulations.

A false alarm, this is actually the normal compliance operation of the exchange, further moving closer to compliance, and the head exchange is actually prepared.

Poloniex, Bittrex and Gate.io only stopped trading coins in some currencies, and mainstream currencies such as BTC, ETH and LTC were completely unaffected. In fact, Firecoin, OKEx, and Coin have long considered compliance issues and adopted a more conservative strategy. Firecoin CEO Qiye said that for compliance reasons, Huobi Global has not provided services to US users, but is provided by HBUS, a US licensed partner. OKEx's public relations department told Babbitt:

"OK, fire coins, and currency security have always been unacceptable. These are only perfect compliance, and the user agreement has long been clear."

In OKEx's Terms of Service, Babbitt does see that OKEx will provide partial or no service to users in certain restricted areas, including all US territories.

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OKEx Terms of Service