The U.S. remains a challenging environment for centralized cryptocurrency exchanges, with major players significantly scaling back their operations and others heading for the door. The most recent casualty of America’s stringent regulatory climate is one time market-leader Poloniex, which has “spun out” from parent company Circle, spinning out of the U.S. market in the process and leaving a void for other exchanges to fill.
Poloniex Heads for the Door, Other Exchanges Enter
Until fairly recently, American citizens could freely trade hundreds of digital assets across exchanges such as Bittrex, Poloniex, Bitfinex, and Binance. Those options have been rapidly whittled down, however, as centralized exchanges have been forced to either exclude the U.S. altogether or render the majority of their assets off-limits to traders east of the Atlantic.
Following a buyout from an Asian investment group, Poloniex will continue to operate internationally, but U.S. customers will be forced to cease trading from as early as November 1. Binance and Bittrex have also been given pause to reconsider their American strategies, vastly reducing the number of trading pairs available to customers in the USA. As centralized exchanges continue to struggle with regulation and red tape, the market seems primed for alternative solutions such as decentralized exchanges and token swapping protocols that aren’t so easily cowed by regulators. It’s a lucrative space which new players are actively seeking to exploit.
The Decline of Centralized Exchanges
American traders find themselves particularly ill-served by centralized exchanges. Not only do they have fewer platforms to trade on, but the available options are severely crippled and a poor reflection of the true state of the crypto market in 2019.