According to a blog post published by Circle, the cryptocurrency firm is releasing its subsidiary exchange Poloniex which is now owned by an “Asian investment group.” The trading platform will become an independent company called Polo Digital Assets, Ltd., and after November 1, 2019, U.S. residents will no longer be able to use the platform.
Also read: Ethereum Name Service Adds Infrastructure for Multi-Currency Support
Circle Spins Out Poloniex
Circle, which specializes in digital assets and over-the-counter swaps, has decided to sell the cryptocurrency exchange Poloniex. The terms of the deal are unknown, but Circle paid roughly $400 million for the trading platform in February 2018. In a message to the public, Circle cofounders Sean Neville and Jeremy Allaire disclosed that the exchange will be its own entity known as Polo Digital Assets, Ltd., and it is now backed by an investment agency located in Asia. Circle’s blog post disclosed that Poloniex will be performing “aggressive hiring” and the new entity will spend $100 million on operations management. On October 21, Polo is offering 0% trading fees until the end of the year but U.S. customers received some bad news.
“This transition will mean some significant changes for existing U.S. customers of Poloniex,” Circle’s blog post underlines. “As detailed in a separate announcement from the Poloniex team, U.S. customers will no longer be able to trade on the exchange starting on November 1, 2019.” Neville and Allaire’s announcement further details:
U.S. customers will continue to be able to access and use their wallets and withdraw funds through wallet and custody services operated by Circle
