Cryptocurrency exchanges are continually met with much harsher and stricter regulatory requirements than ever before. Poloniex, the world’s largest altcoin exchange, is forced to halt operations in the state of Washington. That is a rather surprising turn of events, yet it appears new regulation is forcing the company’s hand.
Washington State Regulation is Troublesome
According to the email sent out to all Poloniex users, the company is forced to halt operations due to regulatory concerns. It appears the Washington State Department of Financial Institutions’ regulation has forced Poloniex to suspend their business activities in the region until further notice. Every time such an announcement is made, it is unlikely services will be resumed anytime soon.
This means all Poloniex users in Washington will no longer be able to trade bitcoin and altcoins on the platform moving forward. Verified Washington residents have 14 days to close any open orders and make sure they withdraw funds from the exchange.It is important to note all accounts will continue to operate as normal during this period, yet it is advised to not store funds on the platform longer than needed.
Once the date of April 21st comes around all Washington-based Poloniex account will be suspended automatically. Users can still log in, yet it becomes impossible to place orders, deposit funds and withdraw money. In fact, using the platform will become useless, as all users can do is check charts and update their account information. Anyone who still has funds in their wallet by that time will need to open a support ticket to get the money out.
Unfortunately, it is not the first time cryptocurrency exchanges have to take drastic action due to horrible regulation. Poloniex is confident they will make a return to Washington state at a future date, although it is doubtful that will happen anytime soon. Poloniex is one of the handful of exchanges suspending their services in the state, and it is believed others may follow.
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