Some legal advisers of exchange companies in the United States say they have difficulties to legally protect their clients due to the strong regulations
Recently, the US exchange company Poloniex has received strong criticism from analysts and financial experts for blocking transactions and getting out more than nine cryptocurrencies from its digital platform.
Poloniex stopped offering Ardor (ARDR), Bytecoin (BCN), Decred (DCR), GameCredits (GAME), Gas (GAS), Lisk (LSK), Nxt (NXT), Omni Layer (OMNI), and Augur (REP) to its customers in The United States.
The company explained that blocking these cryptoactives from its platform responds to the “lack of legal clarity” that is subject to these cryptocurrencies. It indicates that maintaining them could cause legal and financial problems.
With respect to the news of the elimination of these cryptocurrencies from the Poloniex platform, Jeremy Allaire, CEO of Circle, regretted the situation and commented, through the social network Twitter, that he is frustrated about this situation that warns other companies of exchange in the United States. “Poloniex announced today that we are geo-blocking some assets in the United States. We are deeply frustrated by the need to take these steps; this is the result of an increasingly limited environment in the United States for encryption assets”, he said.
Due to this comment, the Chief Legal Officer of Circle, Gus Coldebella, also used his Twitter account to express that in the United States, all the legal teams that represent these exchange companies are in trouble to take correct decisions, after the publication of the guide issued by the US Securities and Exchange Commission (SEC).
Coldebella explains that the geo-blocking of these cryptocurrencies on the Poloniex platform responds to the strong regulations that have been made by the agency. “All the legal teams that try to protect US cryptographic companies fight to take correct decisions following SEC’s guidance. The geo-blocking of Poloniex to these assets in the United States is our effort to respond responsibly to this uncertain regulatory environment”, he said in his Twitter account.
Critical Strong Toward the Exchanges
After Coldebella exposed his difficult situation within the legal environment of legal teams to maintain legal clarity to the companies of exchanges in the United States, one of the main collaborators of Forbes magazine, Frances Coppola, criticized the official and detailed, with examples, the differences between encryption assets and values. She said that, due to their differences, those concepts must be separated in terms of their regulation.
“Oh, look, the legal officer of a cryptocurrency exchange wants new laws, so cryptographic assets are not subject to the same restrictions as values. Because, of course, the reasons why people need protection against offers of fraudulent values never apply to encryption assets, right?”, Coppola sentenced.
This also responds to the statements of the Director of the firm to which Coldebella belongs. He affirms that the regulatory policies about cryptocurrencies should be adjusted in order to provide more clarity to the companies they represent and safety to the users of these platforms.
To conclude his idea, Coldebella states that the laws related to these cryptoactives are wrong to treat these issues. He thinks that the guidance issued by the SEC is incompressible and almost impossible to apply to reality.
By María Rodríguez