As part of its release of the cryptocurrency exchange Poloniex, Circle may begin charging fees to Poloniex US customers. And the company warns that any unclaimed digital assets, those in dormant accounts, may be sent to state governments, consistent with relevant regulations for abandoned property.
Cryptocurrency finance firm Circle and cryptocurrency exchange Poloniex parted ways last month. Now Circle has said that if Poloniex’s U.S. customers don’t withdraw funds from its platform, they will be subject to fees.
According to the company’s Medium post, all U.S. Poloniex customers must withdraw all of their assets before the Dec. 16 deadline. Those who fail to withdraw their funds could lose direct access to their Poloniex U.S. accounts or have the assets in their accounts traded into and stored as USDC.
Apart from that, some users could be charged a monthly service fee and a one-time dormancy fee. The company noted that users will not be charged more than their total account balance.
Make Haste or Your Money Gets BURNT!
According to Circle’s plans, on December 16, 2019, it will shut down the existing Poloniex US site and end all access to existing wallets on the platform. All of the cryptocurrencies still in Poloniex US wallets on that date will be traded over some time into the dollar-pegged stablecoin USDC. The company plans to launch a new withdrawal site for customers in the first half of 2020, and then it may charge a service fee for the USDC funds stored on the new site.
Regarding cryptocurrency that won’t be claimed by former clients it warns that “Assets in dormant accounts may be sent to the account holder’s state, consistent with regulations for abandoned property. Poloniex US also may charge inactivity fees prior to sending abandoned property to a state consistent with applicable regulations.
Poloniex and Circle
Circle acquired Poloniex for $400 million in February 2018, and recently spun out of it to develop a new cryptocurrency exchange, with a plan to spend over $100 million on it. The new exchange, dubbed Polo Digital Assets, will not serve U.S. customers, Circle said at the time.
What is Poloniex?
Poloniex is a pure crypto to crypto exchange based in the United States. With a grand redesign in early 2015 the site has added a wealth of features to provide a fully immersive trading experience.
What is Circle?
Circle is a peer-to-peer payments technology company. It was founded by Jeremy Allaire and Sean Neville in October 2013. Circle’s mobile payment platform, Circle Pay, allows users to hold, send, and receive traditional fiat currencies. In September 2015, Circle received the first BitLicense issued from the New York State Department of Financial Services. In April 2016, the British government approved the first virtual currency licensure to Circle. Circle is headquartered in Boston, Massachusetts.
Up until December 2016, Circle Pay also operated as a Bitcoin wallet service to buy and sell Bitcoins. It has since ceased to provide such service, claiming the company “is now more than ever not a consumer bitcoin exchange, and will continue to focus resources on global social payments and future next-generation blockchain technology”.