- The platform cites regulatory uncertainty as the reason behind the decision.
- New York-based customers will have access only to four coins.
The cryptocurrency wallet platform Abra will no longer provide services for its US-based customers. The company cites regulatory barriers as the primary reasons behind the decision.
All coins except for Bitcoin, Ether, Litecoin and Bitcoin Cash will be transferred to native wallet solutions for the respective assets.
“As a result of continued regulatory uncertainty and restrictions in the United States, we have to make some adjustments to our US business in an effort to continue to be compliant and cooperative with US regulations as they currently exist,” Abra explained in the statement.
“As a part of this effort, we are migrating any synthetic assets to a native hosted wallet solution.”
The company considers the scaling down as a preventive measure amid growing regulatory uncertainties. To avoid issues that may arise due to vague regulatory position, the company will no longer be able to hold QTUM, BTG, EOS, OMG and SNT tokens after August 29.
“US users holding positions in these crypto assets will have to exchange or withdraw their investments from Abra by 11:59 PM EST on August 29, 2019. After that date, any remaining balances in those assets will be converted to Bitcoin in the app,” Abra added.
The New York-based customers will be able to keep only four cryptocurrencies on Abra wallets: Bitcoin, Bitcoin Cash, Ether, and Litecoin.
“New York residents will need to transfer or sell any synthetic holdings by 11:59 PM EST on August 29, 2019. After that date, any remaining balances in those assets will be shown as Bitcoin in the app. Additionally, Abra users from New York will no longer be able to use bank ACH, wire or American express card for deposit/withdraw after Aug 29th, 2019,” the announcement detailed.
Earlier this year, crypto exchange Poloniex delisted 9 coins from its offering list to the US clients, citing regulatory uncertainties.
Another US-based cryptocurrency exchange Poloniex also restricted access to nine coins for US customers earlier this year.