Some Legacy Poloniex Customers Accounts to be Frozen

The number of Poloniex users' complaints in social networks and on forums is growing
28 May 2018   1112

Last week, owners of unverified accounts on the Poloniex began to complain that their funds had been frozen. The number of complaints in social networks and on forums is growing, and some users who were able to verify their accounts through an automated system also report that they can not trade or gain access to the money. This is reported by Bitcoin.com.

In December, the Poloniex exchange reported that all its users are required to undergo verification in order to maintain access to their accounts in the first quarter of 2018. In February, the exchange was purchased by the American payment company Circle. Many believe that the requirement to verify accounts is related to this deal, as the new owner of the exchange carefully approaches the issue of identifying users of their products and combating money laundering. Last week many unverified users of Poloniex lost access to their accounts, and the exchange meets them with the following message:

Poloniex
Poloniex

In one of the discussions on Reddit, complaints begin to accumulate about the verification process itself. So, user u / PauleeWorli writes that he still can not access his account, despite having completed all the necessary procedures.

I am a ‘legacy’ user on Poloniex and I was told to verify today when I logged in. I did that and promptly got an email reply saying I had been verified — My profile now says I have a ‘level 3 verification’ — the type that allows $25,000 per day. But when I go to trade it tells me ‘account frozen’ when I try to place an order. I did make a ticket and then checked Twitter and it seems many people have the same ‘now verified but still frozen’ problem. Can anyone help me here please?
 

PauleeWorli at Reddit

Other users write that they weren't warned in advance that accounts will be immediately blocked.

Something is wrong, Poloniex, I clearly remember you giving warning before 2018 saying after disabling “TRADING” legacy accounts would be able to WITHDRAW their coins. Freezing suddenly? I didn’t even get an email with time limit!
 

Poloniex User

There are a lot of customers on Twitter complaining about this frozen accounts. At the moment there are no official comments from the exchange itself.

Circle to Move Exchange Operations Offshore

The decision was made due to regulatory uncertainty in the United States and now the majority of users will be served by Bermudas unit
23 July 2019   209

The majority of Poloniex users from outside the US will now be serviced by a new unit of this cryptocurrency exchange, which opens in Bermuda, the platform operator, Circle, said on Monday, July 22.

The company said the decision was made due to regulatory uncertainty in the United States. The work of already existing divisions of companies in the United States themselves, as well as in Ireland, the United Kingdom and Hong Kong, will continue.

Representatives of Circle note the advanced and extremely clear legislation in Bermuda, which opens up opportunities for the rapid development of innovations in the field of cryptocurrencies, and for business promotion.

It is based on the Digital Asset Business Act (DABA), adopted in 2018, which provides full control and supervision of financial services related to cryptocurrencies, including the issuance of digital assets, the purchase and sale of coins, exchange transactions, and custodial services.

According to the aforementioned company law to operate in Bermuda, it is necessary to obtain a license, and as Circle reports, today it has become the first large cryptocurrency company in the world to obtain such a Class F (full) license.

As a result, we’ll be able to deliver new innovations, including asset listings and trading services, to global customers while also staying true to our commitment to compliant, well-supervised operations and customer protections.
 

Circle Team

In the commentary, CoinDesk Circle CEO Jeremy Allaire said that over 70% of Poloniex’s entire customer base accounted for overseas users.

Europe and Asia are both pretty significant markets for us in particular. USDC stablecoin is particularly popular with institutional Asian investors. The lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S.
 

Jeremy Allaire

CEO, Circle

It was precisely the lack of clear regulation that forced Circle to dismiss about 30 employees in May, and as Jeremy Allair has now stated, the company plans to hire approximately the same number of new people over the next two years, who, however, will get other roles.

The project to establish a new international operations hub for our market, exchange and wallet services, was a major project. It took a long time working with the Bermuda government and the Bermuda Monetary Authority.
 

Jeremy Allaire

CEO, Circle

The head of Circle also said that a greater variety of assets will become available to international clients of Poloniex, and the exchange can expand the range of financial services that it cannot offer in the United States.

What kind of products and services in question, Allair did not specify, adding only that users can expect more opportunities for revenue. At the same time, he mentioned the existing stacking services for Cosmos and Stellar.