It's Poloniex's way of announcing that the platform, which began independently before joining Circle, is now parting ways with Circle to re-establish itself as \"Polo Digital Assets, Ltd.\" This decision will result in U.S.-based cryptocurrency enthusiasts losing access on December 15.
Another Snub for American Users
Poloniex: A Wild History
For those unfamiliar, Poloniex In 2014, the platform suffered a loss of 12.3% of its Bitcoin reserves, prompting them to cut user portfolios by the same percentage, with or without user consent. While this severely impacted their reputation, they managed to persevere.
The exchange was the victim of a massive hacking attack As a company with a large clientele of over 8 million and connections with more than 1,000 institutions, Poloniex's decision to \"spin off\" from its partner Circle has left U.S. customers out in the cold.
Eventually, in 2917, Poloniex was acquired by Circle The declaration highlighted their inability to compete globally if U.S. customers were included, leading Circle to reduce its operations for U.S. users.
There's a recurring pattern in the crypto sector where American participants are consistently barred from various offerings, whether it's exchanges or ICO investments.
The fundamental reason is the U.S. SEC's notoriously stringent and ambiguous regulations.
This exchange, known for its longevity in the market, once catered extensively to digital currencies, ranging from the prominent to lesser-known projects, many of which have vanished. Originally rooted in the U.S., it warmly welcomed homegrown customers.
These rules apply to everyone considered a \"U.S. person\", encompassing citizens, residents, or those holding dual nationality. This designation makes you untouchable for numerous crypto businesses.
It's an odd twist, Poloniex, once a U.S.-based exchange, now disengaging from its American clientele, demanding they retrieve their funds by December 15 to avoid losing them permanently. While explicit details remain undisclosed, the email hinted at substantial backing from a major Asian investment group, though further information is anticipated soon. It's hard to fault Poloniex for barring American users given the circumstances, yet it's still unfortunate for former patrons needing to transition. Whether the \"Poloniex\" name will persist under Circle remains uncertain.
On a brighter note, several platforms still embrace American users, offering comparable if not superior services compared to the earlier Poloniex. But it's a reminder for U.S. citizens of the potential risk of losing asset access, especially from U.S.-origined entities.
It's always prudent to avoid storing assets on exchanges.
Just Another Brick in the Wall
Robert, News Editor at Blockonomi and firm advocate for a free and private digital future, has been entrenched in the crypto industry for years. Contact him at [email protected]
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