- The ban will come into effect on June 1
- The company did not explain what they mean by “regulatory complexities”
- Previously, the SEC rejected the application for Filecoin Trust, arguing that the token meets the definition of a security.
Yesterday, May 31, Cumberland notified its customers that it was suspending trading in the FIL token. The measure will come into force today, June 1, at 19:00 Kyiv time (16:00 UTC).
In a letter to clients cited The Blocksays the following:
“All transactions in FIL entered into prior to this date will be settled in accordance with normal procedures and the Master Purchase Agreement.”
The company explained its decision by changes in the regulatory field. The platform did not respond to a media request.
Prior to this, in mid-May, the Securities and Exchange Commission (SEC) refused to register Grayscale’s Filecoin Trust exchange product. The regulator motivated this by the fact that the native FIL token has signs of a security, and therefore additional verification is necessary.
Filecoin criticized this decision. According to the platform, the token serves exclusively for internal settlements, is not an investment contract and does not meet the definition of a security.
At the time of writing, the FIL token was trading at $4.67 (-0.6% per day). As you can see, there was no significant reaction to the news. Yesterday, May 31, the asset traded down 2.7%.