Bitstamp Ceases Ethereum Staking For US Customers Amid Regulatory Barriers

2023-8-24 13:30

Bitstamp, one of the prominent cryptocurrency exchanges, has announced its decision to terminate Ethereum (ETH) staking services for its US clientele. This move, exclusive to the United States, comes as a result of regulatory challenges in the country’s cryptocurrency landscape. 

Users are granted a brief window until September 25 to continue earning rewards on their staked Ethereum assets. Subsequent to this date, the staked tokens will be automatically unstaked and returned to users’ accounts.

In an official statement, Bistamp’s national Chief Executive Officer Bobby Zagotta cited regulatory complexities in the US as the driving force behind this strategic shift. The lack of clarity surrounding the legal status of cryptocurrencies has created a challenging environment for exchanges and their customers. 

Regulatory Uncertainties Cast A Shadow Over Bitstamp US Users

This move, while disappointing for users, highlights the ongoing struggle within the US regulatory framework to provide a cohesive approach towards cryptocurrencies. Bitstamp’s withdrawal of Ethereum staking services is a direct consequence of the Securities and Exchange Commission’s failure to offer definitive guidance, leaving businesses and investors in a state of uncertainty.

The decision by Bitstamp to halt Ethereum staking services in the US will undoubtedly impact its American users. Staking has become an increasingly popular method for cryptocurrency holders to earn passive income. The termination of this service will leave many users without a convenient option to earn rewards on their Ethereum holdings. 

With the rapidly evolving landscape of decentralized finance (DeFi), staking has emerged as a way for individuals to actively participate in blockchain networks and be rewarded for supporting network operations. Bitstamp’s withdrawal from this space could potentially prompt users to seek alternatives, impacting the exchange’s user base.

Continued Turmoil: Bitstamp’s Recent Actions

Bitstamp’s decision to cease Ethereum staking services follows its earlier move this month to discontinue support for several other cryptocurrencies, including Polygon (MATIC) and Solana (SOL). Although Bitstamp did not explicitly state the reasons behind this action, speculation has arisen regarding the SEC’s classification of these assets as “unregistered securities.” 

This series of events underscores the growing tension between cryptocurrency exchanges and regulatory bodies, further magnifying the need for comprehensive and clear regulations.

As the cryptocurrency landscape continues to evolve, Bitstamp’s actions serve as a reminder of the challenges faced by industry participants in the absence of a well-defined regulatory framework. The impact on US users signifies the urgent need for regulatory clarity, allowing both businesses and investors to navigate the crypto space with confidence.

Featured image from Philkotse

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Global Cryptocurrency (GCC) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0034358 (-100%)

cryptocurrency bitstamp regulatory staking ethereum comes move

cryptocurrency bitstamp → Результатов: 126


Bitstamp halts Ether staking in the US, cites regulatory challenges

Key takeaway Cryptocurrency exchange Bitstamp has halted its staking service in the United States. The crypto exchange cited regulatory challenges as the reason behind its decision. Bitstamp to halt crypto staking in the US Luxembourg-based cryptocurrency exchange Bitstamp has revealed that it is shutting down its staking service in the United States.

2023-8-24 13:16


Bitstamp Exchange Raises Funds To Enter Derivative Markets In Asia And Europe

Luxumberg-based cryptocurrency exchange, Bitstamp is looking to expand its global presence by broadening its reach in the European and Asian Markets. According to an August 8 Bloomberg report, the crypto exchange is raising fresh funds to support its expansion goals in Europe and Asia while ramping up its UK operations. Also, the exchange revealed plans to […]

2023-8-8 19:00


Bitstamp Requires Its Users Provide Additional Info, To Align Itself With Regulators

Bitstamp cryptocurrency exchange moves forward to comply with regulations and requires its users to provide information about their original source of wealth. The company informed its users about the change in the exchange’s policy via emails sent on Wednesday and asked them to submit additional information on the trading platform. Related Reading | Iran’s Illegal […]

2022-4-19 07:00


Bitstamp Crypto Exchange Implements More Stringent KYC Measures on Dutch Users

Cryptocurrency exchange Bitstamp has implemented more rigorous know-your-customer (KYC) measures for its Netherland-based users.  According to the message sent by the oldest crypto exchange to its Dutch users, the exchange is “legally obligated” to suspend the account of any user who doesn’t comply with the latest rules and fail to provide all the required information.

2021-1-26 17:19


Фото:

Stablecoin Supply Doubles to 12 billion Following a 50% Cryptocurrency Market Price Drop

The total supply of stablecoins in existence has doubled to 12 billion, following an increased demand sparked off by the March 12 (Black Thursday) 50% crypto price crash. The findings from the latest research study by Coin Metrics, which is sponsored by Bitstamp, show that it took a period between March 12 and the first […] The post Stablecoin Supply Doubles to 12 billion Following a 50% Cryptocurrency Market Price Drop appeared first on Bitcoin News.

2020-7-19 16:30


Whale Transfers Bitcoin Worth $10 Million to Bitstamp; Dump Incoming?

Bitcoins worth $10 million dollars have been transferred to the cryptocurrency exchange Bitstamp from an unknown wallet address. Will BTC dump again?  Just two days after Bitcoin’s biggest crash in over 10 months, falling from a value of around $7200 per BTC to under $5500 where it currently resides, a huge transfer of the cryptocurrency has taken place today.

2020-3-14 19:04


BitStamp Adds Full Native Support for SegWit Bitcoin Transfers with Bech32 Addresses

Cryptocurrency exchange Bitstamp has implemented SegWit bitcoin transfers allowing its users to withdraw bitcoin to bech32 addresses. Users can also generate new deposits when using this format. ADDRESSED: We’ve added full native SegWit support to Bitstamp! Our customers can now create #Bitcoin addresses in the new bech32 format: https://t.

2020-2-28 18:10


IRS is not Infringing Privacy By Requesting Data From Crypto Exchanges, Judge Decides

A federal court from California has recently decided that the requests made by the Internal Revenue System (IRS) to the cryptocurrency exchange Bitstamp in a specific case were not illegal. According to the judge, most of the arguments provided by William Zietzke, who filed a lawsuit against the IRS, lack merit. Zietzke argued that the […]

2019-11-30 00:34