Cryptocurrency firm Circle will start charging fees to Poloniex U.S. users who don’t withdraw their assets. Poloniex split off from Circle in October, less than two years after Circle purchased the exchange. Circle urged American users to withdraw their assets before December 15, and now, it has revealed that failure to do so will attract fees.
There will be two types of fees, Circle announced in a blog post. The first will be a monthly service fee for as long as users continue to store their digital assets on the platform. The second will be a one-time dormancy fee for any account that becomes dormant, as per the terms of the prevailing regulations.
“Poloniex users must withdraw their assets before December 16, 2019,” the company stated. Those who don’t will lose direct access to their Poloniex U.S. accounts. Their digital assets will also be traded into, and stored as USDC. This is a stablecoin backed by Circle, Coinbase and a few other companies. Additionally, users will face the two fees.
Circle could also decide to send any unclaimed assets to state governments as dictated by applicable regulations, the Boston-based Goldman Sachs-backed company stated.
As CoinGeek reported, Circle spun off Poloniex in order to focus on other key areas such as crypto investment, fundraising and lending. Once one of the largest crypto exchanges in the U.S., Poloniex has greatly declined in light of competition from other exchanges. Before Circle spun it off, it had laid off some staff members as trading volume and profits took a dip.
Circle revealed that an Asian investment group would provide $100 million backing to Poloniex. This money will be used to expand the exchange’s international operations. And as it has turned out, Justin Sun is a key figure in the takeover. The controversial TRON founder has been reported to visit Circle headquarters to possibly discuss the move. Poloniex has also been promoting TRON, including in a recent tweet urging users to buy the crypto. The exchange deleted the tweet minutes later.
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