In line with a recent ‘official web-blog post‘ published, renowned decentralized exchange platform namely ‘Bancor’ has revealed its plans to exclude U.S. residents from trading tokens from 8th July.
Citing a scarcity of clarity from regulatory authority, executives added that they have finally chosen for a decision to ban all users with a U.S. IP address from trading in ‘cryptocurrencies‘.
“This call has been made in the light of strict regulative uncertainty; at this point, we believe this is often the foremost judicious call for all the members of our ecosystem,” the web-blog post adds. It continues further:
“This will let the Bancor community & ecosystem to innovate quicker and with a much higher clarity.”
Bancor operates as a decentralized protocol employing a P2P setup. While it’s still unclear what specific issue intended this move, the regulative scenario involving another Decentralized exchange [DEX], Etherdelta, earlier in 2018 serves to illustrate the difficulties of working in such unclear regulations within the Unites States.
As ‘reported‘ earlier in Nov. last year, the country’s regulative authority SEC [Securities and Exchange Commission] charged the creator of Etherdelta, ‘Zachary Coburn’, with operating an unregistered securities trading platform and over $300,000 USD as fine.
Bancor added that all of its users will still be able to hold and transfer tokens, whereas conceding that the decentralized parts of its network were beyond its management and would so remain open for the U.S. traders.
“We would like to clarify that this feature will be blocked to users accessing the web-site bancor.network, that offers an exceeding interface to ‘blockchain‘ activity,” the web-log post continues. It further adds as:
“As the Bancor Liquidity Network is a collection of smart contracts on the blockchain, and a non-custodial system, we can’t prohibit users from accessing the blockchain itself. This however can’t be blocked.”
New Global recommendations from the FATF [Financial Action Task Force], set for publication following this week, can place ‘stringent‘ new ID need’s on any entity facilitating crypto trading, both within the United States & elsewhere.