Another Exchange Gets Pressured By Government Regulators

New Zealand Cryptocurrency Regulations
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It’s a hotly-debated topic around the globe: should governments regulate cryptocurrencies? Purists who are fully committed to the decentralized, peer-to-peer vision laid out by Satoshi Nakamoto, would much prefer no regulation of the industry whatsoever. They maintain that that the crypto world would be better off without it, and that crypto would flourish in an environment of complete freedom.

Government Regulation Of CryptocurrenciesWhile complete freedom might be the utopian dream of decentralized purists, that’s not the world that cryptocurrency resides in. Governments pass rules and regulations. Governments restrict. Governments seek control. In short, governments govern.

It is within the nature of governments to create rules where there are none. We are seeing this in the cyptocurrency field throughout the world. More and more governments are creating regulations that restrict cryptocurrencies. The most recent example is at Cryptopia Exchange, which has over 2 million global users and the world’s largest range of cryptocurrencies. Founded in 2014, and based in New Zealand, Cryptopia boasts a passionate community of users and aims to offer world class service.

Less than 24 hours ago, Cryptopia, without any prior notice, delisted 25 cryptocurrencies, citing the potential for the coins to be ‘Financial Products’.  Cryptopia stated:

Cryptopia is registered as a Financial Service Provider in New Zealand. This registration only allows us to list coins that are not ‘Financial Products’ on our exchange. The concept of a ‘Financial Product’ under New Zealand law is similar (but not identical) to that of a ‘Security’ under US law (and equivalent definitions in other jurisdictions).

We continually review and update our operations to ensure we remain compliant with our legal obligations. Cryptopia is committed to ensuring we are compliant so we can remain a responsible company both under New Zealand law and in order to meet our own ethical standards.

Cryptopia cryptocurrency exchangeThe 25 coins that Cryptopia delisted are:

  1. Aureus (AURS)
  2. Bitradio (BRO)
  3. ChronosCoin (CRX)
  4. DCORP (DRP)
  5. DDF (DDF)
  6. DecentBet (DBET)
  7. LFTCCoin (LFTC)*
  8. ProudMoney (PROUD)
  9. OX Fina (OX)
  10. 21Million (21M)
  11. BitcoinDark (BTCD)
  12. BlockOptions (BOP)
  13. Bonpay (BON)
  14. NeuroDAO (NDAO)
  15. CrowdCoin (CRC)
  16. DigiPulse (DGPT)
  17. DRP Utility (DRPU)
  18. EncryptoTel (ETT)
  19. Futereum X (FUTX)
  20. HomeblockCoin (HBC)
  21. InterstellarHoldings (HOLD)
  22. Lithiumcoin (LIT)
  23. MatrixCoin (MATRX)
  24. PlexCoin (PLX)
  25. TenX (PAY)

Cryptopia customers who have any of the coins in the above list have 30 days to remove the coins from Cryptopia of the coins will be lost.

You can read the full statement from cryptopia here.