The American compliance exchange, EDXM (EDX Market), recently made headlines by removing support for Bitcoin Cash (BCH) from its homepage. This decision has left only Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) listed on the platform. The move was confirmed by the EDXM CSO in a statement to Digital Asset on November 2, stating that EDXM currently does not support BCH.
EDXM is a significant player in the cryptocurrency market, backed by fund giants such as Fidelity. Therefore, its decision to delist BCH is seen as a interesting development. This move has sparked speculation about the reasons behind it.
One possible explanation could be regulatory concerns. Cryptocurrency exchanges operate in a complex and rapidly evolving regulatory environment. In some jurisdictions, certain cryptocurrencies are considered securities and are subject to additional regulations. EDXM’s CEO, Jamil Nazarali, has previously explained their selective approach to cryptocurrency listings, driven by compliance with U.S. SEC regulations to avoid classification as securities.
Selective listings due to regulatory considerations
The delisting of BCH from EDXM could be seen as part of this broader trend of exchanges becoming more selective in their listings due to regulatory considerations. It’s also worth noting that the delisting of BCH does not necessarily reflect on the viability or value of BCH as a cryptocurrency. Instead, it may be more indicative of the exchange’s strategy and its interpretation of regulatory requirements.
In conclusion, while the exact reasons for EDXM’s decision to remove BCH from its platform are not publicly stated, it is likely that regulatory considerations played a significant role. As the regulatory landscape for cryptocurrencies continues to evolve, exchanges like EDXM may continue to adjust their offerings accordingly.