Cryptocurrency exchange Poloniex has added support for cards and bank accounts for crypto traders. The exchange announced the update via a blog post, stating that it would make it easier and faster to move value on and off the exchange. Poloniex has been operating as a crypto-to-crypto exchange up until now and this will be the first time it offers its users a fiat-to-crypto channel.
Acquired by Circle for $400 million in 2018, Poloniex has continued to lose its market share to its competition. In the U.S., Coinbase has continued to expand its customer base as it adds support for new tokens as well as advanced features such as crypto insurance. Other U.S.-based exchanges such as Gemini, Bittrex, and Kraken have also ramped up their efforts to increase their customer base. The competition has increased even more with other international exchanges such as Huobi and Bitstamp establishing U.S. operations. Poloniex has not been as aggressive which has seen its market share dwindle with time.
With the fiat integration, Poloniex intends on reestablishing its position as a dominant player in the U.S. crypto scene.
Poloniex users who integrate their bank account will be able to deposit money which will be automatically tokenized to USD Coin (USDC). Users can also withdraw USDC directly into their bank accounts, the post stated. The USDC stablecoin was developed by Circle, the parent company of Poloniex.
The exchange set the weekly limits for deposits at $50,000 and $25,000 for withdrawals. Users who wish to change their limits can contact the exchange.
Poloniex also announced that it had partnered with Simplex, an Israeli online payments firm, enabling its users to purchase cryptos through debit and credit cards. Simplex allows its users to purchase as little as $50 worth of crypto at a 3.5% fee. Users who purchase more than $300 worth of crypto will only incur a flat $10.
With the updates, Poloniex hopes it will offer its users an edge, “especially for traders who use multiple exchanges for arbitrage opportunities.”
Poloniex has found itself in murky waters in the recent past. In June, the exchange revealed that margin lenders on the platform had lost $13.5 million after a flash crash hit CLAM cryptocurrency, wiping out two-thirds of its value in hours. This led to the defaulting of a high number of margin loans. The loss amounted to 1,800 SegWitCoin (BTC) in the Poloniex BTC margin lending pool.
Prior to the margin lending loss, the exchange had announced that it had disabled markets for nine tokens for its U.S. customers due to regulatory uncertainty.
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