Crypto exchange Poloniex has recently announced that it was breaking out of its parent firm Circle.
It made this announcement via an official blog post, asserting that it would no longer be a member of the Circle conglomerate. This news comes barely one year after Circle acquired Poloniex for $400 million.
Poloniex will now be known as Polo Digital Asset Ltd and backed up an anonymous Asian investment company. It will be an “independent international company” that will spend about $100 million to ensure it stands out as a top exchange platform in the crypto space. The company looks to employ over 100 full-time employees from existing Poloniex workers. Besides, it will run a zero trading fee exchange for the remainder of 2019.
US Citizens barred from Poloniex
According to the blog post, starting October 18, US users will be barred from creating new profiles on Poloniex. From November 1, US traders will not be able to carry out transactions on the exchange. Users in the US will be able to withdraw their assets or forfeit them until December 15, 2019.
The United States has been quite stringent in its stance against crypto. Several exchanges have had to relocate while others completely barred US citizens. The split will guarantee complete “focus on the needs of global crypto traders with new features, assets, and services.”
Speaking on the Spilt, Co-founder of Circle Jeremy Allaire said, “It is bittersweet for Circle to see this incredible product and business spin out on its own”. He also pointed out that Circle had high hopes for Poloniex, and they’ve made plausible progress with the exchange.
And added, “[…] We’ve made enormous progress with Poloniex, including massive infrastructure improvements, adding more fiat options with USDC integration, launching best in class native apps for traders, and building global operations capabilities that can deliver excellent customer service.”
Allaire emphasized that though Poloniex will be sorely missed, Circle will improve its “efforts to build a more open, global and accessible financial system.” For instance, it is building SeedInvest, which it has recently acquired.
It is also important to note that Circle canceled out its payment app, CirclePay on September 30, 2019. Then, it claimed that it was looking to encourage crypto adoption through Poloniex.