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Bancor reacts to increasing regulatory uncertainty; will disable conversion functionality for U.S users

Sahana Kiran

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Decentralized trading platform, Bancor, recently announced in a blog post that citizens of the United States will no longer be able to use the Bancor application to convert tokens. However, users with Bancor wallets will still be able to log-in, hold tokens, and transfer tokens from the United States. Only conversion functionality will be disabled, the blog post said.

In their blog post,Bancor also revealed the reason for this new development,

“The decision has been made in light of increased regulatory uncertainty; at this time, we believe this is the most judicious decision for all the members of our ecosystem. This will enable the Bancor community and ecosystem to innovate faster and with greater clarity.

For users with IP addresses from the United States or US citizens or domiciliaries, the availability of token conversion will be blocked on Bancor’s web application. Even if a user with American citizenship is not based in the United States, he/she will be restricted from converting tokens.

According to Bancor, this update will be put into effect beginning from July 8.

Bancor also clarified that functionality will be blocked to users accessing the website, which offers an interface to blockchain activity.

“As the Bancor Liquidity Network is a collection of smart contracts on the blockchain, and a non-custodial system, we cannot restrict users from accessing the blockchain itself.”

Many cryptocurrency entities have recently been blocking users from the United States, citing security and compliance reasons, with many keen on expanding their market in other parts of the world. Changpeng Zhao, Founder and CEO of Binance, the largest cryptocurrency exchange in the world, recently announced that Binance would no longer provide its services to customers located in the United States. Instead, Binance will be soon launching Binance U.S, in partnership with BAM Trading Services.

Other cryptocurrency exchanges such as Bittrex and Poloniex have also taken a few steps to adhere and comply to the increasingly strict legal and regulatory environment in the United States. Poloniex had de-listed nine crypto-assets from its exchange, citing a lack of legal clarity with respect to cryptocurrencies in the US. Bittrex too, de-listed a set of 40 cryptocurrencies from Bittrex U.S, aiming to transition these crypto-assets to Bittrex International from June 28.

 





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Sahana is a journalism graduate, who is currently experiencing the work life. She has writing experience in print media and is here to explore the crypto world.

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