The well-known cryptocurrency exchange, Poloniex, has decided to separate from its parent firm, Circle. Poloniex will now be an “independent international company,” named, Polo Digital Assets, Ltd., and will be backed by an unnamed Asian investment firm. As per their blog post, the platform has framed a multi-year plan to contribute more than $100 million for the development and expansion of the network.
Poloniex also informs that they would no longer be able to include the US customers, once Circle and they have parted ways. The exchange stated, “Unfortunately, in order to be competitive in the global market, we will not be able to include US customers in the spin-out, so Circle will be winding down operations for US Poloniex customers. Beginning today, US persons will no longer be able to create new accounts on Poloniex. Starting on November 1, 2019, US customers will no longer be able to execute trades on the exchange. When trading ends, US customers will still be able to withdraw their assets through Circle until at least December 15, 2019.”
Circle’s co-founders, Jeremy Allaire and Sean Neville, also commented on Poloniex’s departure, mentioning it as a bittersweet separation. They said, “It is bittersweet for Circle to see this incredible product and business spin out on its own … 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.”
Poloniex will reduce its spot trading fees to zero percent from October 21 to December 31 for all of the traders using the exchange.