SEC pressure! Established exchange Bitstamp delists certain altcoins amidst competition accusations, seeks funding to expand its reach.

One of the well-established cryptocurrency exchanges founded in 2011, Bitstamp, is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) regarding certain tokens, including $MATIC and $SOL, that have been deemed securities, leading to the imminent permanent cessation of their trading. Additionally, the company is also undergoing a new round of financing to facilitate its global expansion plans.

Some Competing Tokens to Cease Trading

Bitstamp, which has been involved in the cryptocurrency industry for over a decade, appears to be struggling against the increasing regulatory measures and enforcement actions by the United States towards cryptocurrency companies. The official Blog and Twitter accounts announced yesterday, August 8, that some tokens will be delisted and trading will be temporarily halted.

Bitstamp has a comprehensive framework and standards in place to continuously evaluate the cryptocurrency trading services we offer. Considering the recent regulatory environment and industry developments, we are making adjustments to some of our cryptocurrency products, especially for users residing in the United States.

It is reported that trading activities for tokens such as MATIC, SOL, NEAR, SAND, AXS, CHZ, and MANA will be permanently stopped on the platform, and users are required to close their buy/sell orders by August 29, after which trading will no longer be possible.

However, users will still be able to hold these seven tokens in their accounts and withdraw them at any time.

Although Bitstamp did not specify the reasons for halting trading, these seven tokens have been mentioned in the SEC's lawsuit against exchanges Binance and Coinbase, being considered unregistered securities. Other cryptocurrency-friendly institutions like Revolut will also delist some accused tokens in September to avoid trouble.

Bitstamp Seeks Funding for Expansion

Additionally, according to a report by Bloomberg, Bitstamp is actively seeking funding to achieve its global expansion goals.

It is understood that the company initiated the fundraising process at the end of June, with advisory services provided by Galaxy Digital.

The plan is to use this funding to launch derivative trading in Europe in 2024, expand business in the Asian market, and enhance services in the UK. Bitstamp became a registered entity with the UK Financial Conduct Authority (FCA) in 2021, known for its very low registration success rate in the country and regulatory body.

Bitstamp's current CEO, Jean-Baptiste Graftieaux, stated that the company is focused on fundraising to expand services for cryptocurrency users and institutions, emphasizing:

Bitstamp is not for sale, and we are not actively seeking to sell the company.

Overall, Bitstamp's actions align with its past acquisitions and development plans, further solidifying its position in the exchange market.