Bittrex Revokes Access to 32 Coins
Beginning June 21, Bittrex redirects the markets of 32 digital assets from its U.S. website to Bittrex International, which will prevent customers in the United States from trading the selected cryptos.
Image source: Bittrex
According to the exchange:
“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.”
Poloniex Flash Crash Related?
Bittrex’s announcement comes one day after crypto exchange Poloniex revealed that its margin lenders lost $13.5 million in a CLAM flash crash.
Due to the swift and unexpected price fall and the lack of liquidity, the cryptocurrency exchange was unable to process automatic liquidations of CLAM margin positions, resulting in a number of loans to default on Poloniex.
On Thursday, Poloniex announced that it reduced the principal of active bitcoin loans by 16.2% in an attempt to cover its losses.
In the aftermath of the flash crash, users affected by the exchange’s haircut have become furious, with some of them talking about launching a lawsuit against Poloniex.
Considering Poloniex is based in the United States and socializing financial losses is illegal, the crypto exchange could face legal consequences if users decide to bring the case to the court.
Bittrex has not disclosed the exact reason for its upcoming geo block. Although, there’s a chance that they learned from Poloniex’s situation and decided to bar U.S. users from trading high-risk digital assets.
— Bittrex (@BittrexExchange) June 8, 2019
Binance DEX Blocks U.S. Users
Bittrex is not alone in launching geographical blocks against customers in the United States. Earlier this month, Binance posted a pop-up message on its decentralized exchange’s platform revealing that users from 29 countries – including the United States – won’t be able to trade on the DEX.
“Please note that by 1 July 2019 (UTC 00:00) trading and accessing to the wallet interface through www.binance.org will no longer be available to users with IP addresses from the countries listed above,” the message stated.
Binance DEX will terminate its services across multiple countries starting in July.