Circle Warns Poloniex US Customer Assets May Be Sent to the Government
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.
Also Read:Circle Drops Poloniex Leaving US Crypto Traders High and Dry Time Is Running out for Poloniex US Clients
Circle, which specializes in digital assets and over-the-counter swaps, announced in October that it had decided to sell the cryptocurrency exchange it controls and that American customers will no longer be able to trade on the platform starting on November 1, 2019. Now the company is urging Poloniex US customers who have not yet done so to withdraw their assets as soon as possible before it may begin charging fees on their accounts.
Circle explains that there are two fees Poloniex US customers who do not withdraw their assets may be subject to: a monthly service fee while a user continues to have assets stored on the platform, and a one-time dormancy fee when an account becomes dormant per the terms of the applicable regulations. Additionally, the company warns that unclaimed digital assets may be sent to state governments, in accordance with the relevant regulations.
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.”
The company stated in a blog post: “Poloniex US customers must withdraw their assets before December 16, 2019. If Poloniex US customers don’t withdraw their assets before then, they’ll face several actions: They’ll lose direct access to their Poloniex US accounts. Their assets will be traded into and stored as USDC. They may be charged a monthly service fee and/or a one-time dormancy fee.” Luckily, the company reassures Poloniex US customers that they will never be charged more than their total account balance.
What do you think about Circle possibly sending Poloniex US clients’ assets to the government? Share your thoughts in the comments section below.
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Avi Mizrahi is an economist and entrepreneur who has been covering Bitcoin as a journalist since 2013. He has spoken about the promise of cryptocurrency and blockchain technology at numerous financial conferences around the world, from London to Hong-Kong. Please enable JavaScript to view the comments powered by Disqus.