Cryptocurrency trading company Cumberland will no longer trade Filecoin (FIL) altcoins due to regulatory pressures.
The company said in a warning to its customers that it will stop trading over-the-counter (OTC) tokens with Filecoin.
The measure will take effect on June 1 at 7:00 pm, and the company announced that "all FIL transactions made before this time will be handled in accordance with the usual procedures under the Master Procurement Agreement".
The firm attributed its decision to cease OTC trading in the altcoin in question to a measure taken due to the "regulatory environment".
Earlier this month, Grayscale Investments said it received a letter from the U.S. Securities and Exchange Commission (SEC) asking it to withdraw the registration of a trust that will invest in Filecoin because the regulator has determined that the asset meets the definition of a security.
At the time of this writing, the FIL altcoin price is trading at $4.70 with a 3.20% loss during the day. At the peak of the bull season in the cryptocurrency market, FIL became one of the most talked about altcoins and peaked at $237.
The token has lost 98% from its peak.
*Not investment advice.