Poloniex, a cryptocurrency exchange platform, has been in the news lately due to its situation in the United States. The platform has a history of being a popular choice for crypto traders in the US, but recent events have left many customers confused and frustrated. In this article, we will explore the current situation of Poloniex in the US and provide key takeaways for those who are affected.
Poloniex has been operating in the US since 2014 and was acquired by Circle in 2018. However, in 2019, Circle announced that it was spinning out Poloniex into a new company called Polo Digital Assets, which would focus on the needs of global traders. This spin-out was part of Circle’s plan to shift its focus to stablecoins and other blockchain-based financial services. Since then, Poloniex has been winding down its US operations, causing concern among its US customers.
The situation has been further complicated by regulatory issues. In August 2021, the Securities and Exchange Commission (SEC) charged Poloniex with operating an unregistered online digital asset exchange. Poloniex agreed to pay more than $10 million to settle the charges. These regulatory challenges, combined with the spin-out, have resulted in a confusing and frustrating situation for Poloniex’s US customers.
History of Poloniex in the US
Poloniex is a cryptocurrency exchange that was founded in 2014 by Tristan D’Agosta. The exchange was initially based in Wilmington, Delaware, but later moved to San Francisco, California. Poloniex quickly became one of the most popular cryptocurrency exchanges in the world, with a daily trading volume exceeding $1 billion at its peak.
In 2018, Poloniex was acquired by Circle, a Boston-based financial technology company. Following the acquisition, Circle announced that it would be spinning off Poloniex into a separate company that would focus on serving non-US customers. This decision was made in response to increasing regulatory pressure in the United States.
The spin-off was completed in October 2019, and the new company was named Polo Digital Assets, Ltd. However, Polo Digital Assets was not able to operate in the United States due to regulatory restrictions. As a result, US customers were given until December 2019 to withdraw all their funds from the exchange.
In August 2021, the Securities and Exchange Commission (SEC) charged Poloniex with operating an unregistered online digital asset exchange. The SEC alleged that Poloniex had facilitated the buying and selling of digital asset securities without registering with the agency, in violation of federal securities laws. Poloniex agreed to pay more than $10 million to settle the charges.
Poloniex founded in Wilmington, Delaware|
Poloniex moves to San Francisco, California|
Poloniex acquired by Circle|
Poloniex spun off into a separate company named Polo Digital Assets|
Poloniex charged by the SEC for operating an unregistered online digital asset exchange|
Despite its regulatory troubles in the United States, Poloniex remains a popular cryptocurrency exchange worldwide. The exchange offers trading in a wide variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Dogecoin. Poloniex also offers margin trading and lending services, as well as a mobile app for trading on the go.
Poloniex US Support
Poloniex US offers customer support through its support center. Customers can submit a ticket by clicking on the “Support” button on the Poloniex US support page. They will be asked to fill out the necessary information, and additional options will be presented if they are logged into their Poloniex account.
The Poloniex US support team is available to answer any questions or concerns that customers may have. They can help with issues related to account security, deposits, withdrawals, and trading on Poloniex. Customers can also contact Poloniex US support via chat by clicking on the “Chat” button on the Poloniex website.
In addition to its support center and chat feature, Poloniex US also provides a comprehensive FAQ section. The FAQ covers a range of topics, including account setup, trading, and security. Customers can find answers to common questions about Poloniex US, such as how to create, verify, and send funds to their Poloniex account.
Poloniex US is committed to providing its customers with the best possible support. The company is constantly working to improve its support services and is always looking for ways to better serve its customers.
Overall, Poloniex US provides robust support services to its customers. Whether customers need help with account setup, trading, or security, the Poloniex US support team is available to assist them. With its support center, chat feature, and comprehensive FAQ section, Poloniex US is dedicated to providing its customers with the resources they need to succeed in the world of cryptocurrency trading.
Poloniex US provides its users with a range of options to manage their funds. Users can deposit funds into their accounts using cryptocurrencies, wire transfers, and other payment methods. The exchange supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Users can also withdraw their funds using the same methods.
Poloniex US provides a detailed breakdown of the user’s account balance, including the available balance, the total balance, and the amount on hold. Users can also view their transaction history to keep track of their deposits, withdrawals, and trades. The exchange also offers a feature that allows users to freeze their accounts temporarily.
Poloniex US complies with state and federal regulations regarding unclaimed property and dormant accounts. If an account is inactive for a certain period of time, the exchange will attempt to contact the user to prevent the account from becoming dormant. If the user does not respond, the account will be flagged as dormant.
Poloniex US also provides users with the option to claim unclaimed property. If a user has funds that have been unclaimed for a certain period of time, the exchange will attempt to contact the user to claim the funds. If the user does not respond, the funds will be turned over to the state as unclaimed property.
Funds Management Features|
Users can deposit funds using cryptocurrencies, wire transfers, and other payment methods.|
Users can withdraw funds using the same methods.|
Users can view their account balance, including the available balance, the total balance, and the amount on hold.|
Users can view their transaction history to keep track of their deposits, withdrawals, and trades.|
Users can freeze their accounts temporarily.|
Poloniex US complies with state and federal regulations regarding unclaimed property.|
Poloniex US attempts to contact users with inactive accounts to prevent the account from becoming dormant.|
In summary, Poloniex US provides users with a range of options to manage their funds. Users can deposit and withdraw funds using various payment methods, view their account balance and transaction history, and freeze their accounts temporarily. The exchange also complies with state and federal regulations regarding unclaimed property and dormant accounts.
Fees and Transaction Details
Poloniex charges a fee for every withdrawal transaction made from the platform. The fee is fixed per asset and is meant to cover the cost of broadcasting the transaction to the network. The fees can change regularly due to network congestion and other factors. The current fee structure can be found on the Poloniex website.
The exchange does not charge any fees for depositing cryptocurrency into your Poloniex account. However, users should keep in mind that there may be network fees associated with sending cryptocurrencies to the platform. These fees are not controlled by Poloniex and can vary depending on the cryptocurrency being sent and the current state of the network.
Poloniex users can access their transaction history by selecting “Balances > History” on the top left corner of the platform. Users can view their deposit and withdrawal history, as well as their trade history. However, it is important to note that transaction history information prior to December 15, 2019, is not accessible on the platform. Users will have to wait until the planned Poloniex US withdrawal site is launched in the first quarter of 2024 to access this information again.
The transaction fee for withdrawals is consistent with Ethereum transaction fees, which have been around $0.13 per transaction. Users should keep in mind that this fee can fluctuate based on network congestion and other factors. Additionally, users should ensure that they have enough funds in their account to cover the transaction fee and any network fees associated with sending the cryptocurrency to their external wallet.
Withdrawal transaction fee|
Fixed per asset|
Deposit transaction fee|
Transaction history accessibility|
Only accessible for transactions after December 15, 2019|
Withdrawal transaction fee|
Consistent with Ethereum transaction fees (around $0.13 per transaction)|
In summary, Poloniex charges a fixed fee per asset for withdrawal transactions and does not charge any fees for depositing cryptocurrency into the platform. Users can access their transaction history on the platform, but information prior to December 15, 2019, is not accessible at this time. The transaction fee for withdrawals is consistent with Ethereum transaction fees, but users should ensure that they have enough funds in their account to cover the fee and any associated network fees.
Regulations and Compliance
Poloniex US has had to navigate a complex regulatory landscape in order to operate its online digital asset exchange. One of the key areas of focus for regulators has been anti-money laundering (AML) compliance. Poloniex US has taken steps to ensure that it is in compliance with AML regulations, including the USA PATRIOT Act and the Bank Secrecy Act (BSA).
To comply with these regulations, Poloniex US requires all users to complete a Know Your Customer (KYC) process, which involves providing personal information and identification documents. This process helps to prevent criminal activity, such as money laundering and terrorist financing. Poloniex US also monitors user activity for suspicious behavior and reports any suspicious activity to the relevant authorities.
In addition to AML compliance, Poloniex US also has a user agreement that outlines the terms and conditions of using the platform. The user agreement covers a range of topics, including prohibited activities, intellectual property rights, and liability limitations. Users are required to agree to the terms of the user agreement before using the platform.
To ensure ongoing compliance with regulations and the user agreement, Poloniex US has a dedicated compliance team that monitors activity on the platform and ensures that all users are following the rules. The team also works closely with external auditors to ensure that the platform is operating in compliance with all applicable regulations.
Anti-Money Laundering (AML)|
Poloniex US requires all users to complete a KYC process and monitors user activity for suspicious behavior to prevent money laundering and terrorist financing.|
The user agreement outlines the terms and conditions of using the platform, including prohibited activities, intellectual property rights, and liability limitations.|
Poloniex US has a dedicated compliance team that monitors activity on the platform and ensures ongoing compliance with regulations and the user agreement.|
Poloniex’s Spin Out and Wind Down
In October 2019, Poloniex announced that it was spinning out from Circle into a new company called Polo Digital Assets, Ltd. Unfortunately, US customers were not included in this spin out, and as a result, Circle began winding down operations for US Poloniex customers. This wind down officially began on December 18, 2019, when Poloniex US shut down its site and all access to existing Poloniex US wallets.
The spin out immediately affected several hundred thousand US Poloniex customers who held tens of millions of dollars in value across dozens of individual crypto assets. Making the transition seamless for such a large, diverse group of customers across a range of assets presented a challenge. To help customers through the wind down process, Poloniex US provided a number of resources, including a comprehensive FAQ page and regular updates on news and announcements.
One of the key goals of the wind down was to ensure that US Poloniex customers were able to withdraw their funds in a timely and secure manner. To this end, Poloniex US worked closely with regulators and other partners to ensure that all funds were properly accounted for and that customers were able to access their funds as quickly as possible.
The parent company of Poloniex before the spin out|
The process by which Poloniex became a separate company from Circle|
The process by which Poloniex US shut down its site and all access to existing Poloniex US wallets|
Poloniex and Taxes
Poloniex has been in the news for various legal and regulatory issues, including tax-related ones. In 2018, the Internal Revenue Service (IRS) sent a summons to Poloniex’s parent company, Circle Internet Financial, requesting information about its customers’ transactions. The IRS was specifically interested in customers who had traded more than $20,000 worth of cryptocurrency between 2016 and 2018.
Poloniex initially fought the summons, arguing that it was too broad and violated its customers’ privacy rights. However, in November 2019, a federal court ruled that Poloniex must comply with the summons and turn over the requested information to the IRS.
The court’s decision was a blow to Poloniex and its customers, as it meant that the IRS could potentially use the information to pursue tax evasion cases against them. Poloniex subsequently sent out an email to affected customers, notifying them of the court’s decision and urging them to consult with a tax professional if they had any concerns.
It is worth noting that cryptocurrency taxation is still a complex and evolving area, and there is no clear consensus on how to treat it for tax purposes. The IRS has issued guidance on cryptocurrency taxation, but it is not always clear-cut and can vary depending on the specific circumstances of each case.
Overall, the Poloniex tax situation highlights the need for cryptocurrency users to stay informed about their tax obligations and to seek professional advice if they have any doubts or concerns. As cryptocurrency continues to gain mainstream acceptance, it is likely that tax authorities will continue to scrutinize its use and seek to enforce tax compliance.
Requested information about Poloniex’s customers’ transactions|
Fought the IRS summons, but ultimately had to comply and turn over information|
Circle Internet Financial|
Poloniex’s parent company that received the IRS summons|
Potentially subject to tax enforcement based on the information obtained by the IRS|
Recommended by Poloniex to customers who received the IRS notification|
A complex and evolving area with no clear consensus on how to treat it for tax purposes|
Centre.io and Polo Digital Assets
Centre.io is a consortium of companies that developed the USDC stablecoin, which is now widely used in the cryptocurrency industry. Poloniex was one of the first exchanges to list USDC, and it quickly became a popular trading pair on the platform. However, with the spin-out of Poloniex into Polo Digital Assets, it is unclear how the relationship between the two entities will continue.
Polo Digital Assets has stated that it will continue to support USDC trading pairs, but it is not clear if it will remain a member of the Centre.io consortium. The stablecoin has become an important part of the cryptocurrency ecosystem, and its continued success is likely to depend on the support of major exchanges like Poloniex.
If Polo Digital Assets were to leave the Centre.io consortium, it could have implications for the future of USDC. The stablecoin has been seen as a more regulated and trustworthy alternative to other stablecoins, and its success has been partly due to the involvement of major companies like Coinbase and Circle. If Poloniex were to leave, it could potentially damage the reputation of USDC and make it less attractive to investors.
Overall, the relationship between Centre.io and Polo Digital Assets is an important one for the cryptocurrency industry. The success of USDC and other stablecoins is likely to depend on the continued support of major exchanges, and the departure of Poloniex from the consortium could have significant implications. However, at this point, it is unclear how the situation will develop, and it is likely that both Centre.io and Polo Digital Assets are closely monitoring the situation.
Polo Digital Assets|
Developed the USDC stablecoin|
Part of the Centre.io consortium|
Consortium of companies|
Will continue to support USDC trading pairs|
USDC widely used in the cryptocurrency industry|
Unclear if it will remain a member of the consortium|
USDC seen as a more regulated and trustworthy alternative to other stablecoins|
Departure could potentially damage the reputation of USDC|
Poloniex and USDC
Poloniex, a US-based cryptocurrency exchange, has been in the news lately due to its decision to delist several cryptocurrencies from its platform. As a result, many Poloniex US customers have been left with assets that are difficult to withdraw. In response, Poloniex has introduced USD Coin (USDC) as a new option for customers to withdraw their assets.
USDC is an ERC-20 token that is pegged to the US dollar, meaning that its value is stable and not subject to the same volatility as other cryptocurrencies. This makes it an attractive option for customers who want to move their assets off the Poloniex platform and into a more stable currency.
One advantage of USDC is its low transaction costs. Because it is an ERC-20 token, the transaction fees associated with moving USDC on the blockchain are much lower than those associated with other cryptocurrencies. This means that customers can save money by using USDC to move their assets.
Another advantage of USDC is that it can be used to withdraw small amounts of assets that would otherwise be stuck on the Poloniex platform due to minimum withdrawal limits. Customers with “dust” – small amounts of assets that are below the minimum withdrawal limit – can now use USDC to withdraw their assets.
Low transaction costs, stability, ability to withdraw small amounts of assets|
In summary, USDC is a new option for Poloniex US customers to withdraw their assets. It is an ERC-20 token that is pegged to the US dollar, making it a stable and low-cost option for moving assets. Additionally, it can be used to withdraw small amounts of assets that would otherwise be stuck on the Poloniex platform.
Cryptocurrency Exchanges Comparison
Poloniex is just one of many cryptocurrency exchanges available to traders. For those who are new to the world of cryptocurrency, it can be overwhelming to choose the right exchange. Therefore, it’s important to compare the features of different exchanges to find the right one for you.
One of the most important factors to consider when choosing a cryptocurrency exchange is the fees. Some exchanges charge a flat fee per transaction, while others charge a percentage of the total transaction amount. Poloniex charges a percentage of the trade amount, ranging from 0.1% to 0.2%, depending on the user’s trading volume.
Another important factor to consider is the selection of cryptocurrencies available on the exchange. Poloniex has a wide selection of over 200 cryptocurrencies, making it one of the deepest rosters among the major exchanges. However, Binance, for example, offers a much wider selection of over 500 cryptocurrencies.
Different exchanges offer different trading options, such as spot trading, margin trading, and futures trading. Poloniex offers spot and futures trading, while Bittrex offers spot trading and margin trading. It’s important to choose an exchange that offers the trading options that fit your needs.
Security is a crucial factor to consider when choosing a cryptocurrency exchange. Poloniex has implemented several security measures, such as two-factor authentication and cold storage for user funds. However, it’s important to note that no exchange is completely immune to hacks or security breaches.
The user interface of an exchange can also be an important factor to consider, especially for new traders. Poloniex has a relatively simple and easy-to-use interface, but some users may prefer the more advanced interface offered by exchanges like Binance.
Finally, it’s important to consider the quality of customer support offered by the exchange. Poloniex offers email support and a knowledge base, but some users have reported slow response times. Binance, on the other hand, offers 24/7 customer support via live chat.
Percentage of trade amount|
Over 200 cryptocurrencies|
Spot and futures trading|
Two-factor authentication and cold storage|
Simple and easy-to-use|
Email support and knowledge base|
Percentage of trade amount|
Over 500 cryptocurrencies|
Spot, margin, and futures trading|
Two-factor authentication and cold storage|
24/7 customer support via live chat|
Frequently Asked Questions
What is the current situation with Poloniex in the US?
Poloniex US has ceased operations as of December 18, 2019. The company has shut down its existing site and all access to existing wallets. All cryptocurrencies still in Poloniex US wallets on that date have been traded over time into USDC, a stablecoin, and stored for customers as USDC. Poloniex has also created a Fair Fund to compensate customers who were impacted by the company’s regulatory violations.
How does the OFAC fine affect Poloniex users?
In October 2020, the US Treasury’s Office of Foreign Assets Control (OFAC) announced a $10 million fine against Poloniex for alleged violations of US sanctions laws. The fine is related to Poloniex’s failure to implement and maintain an effective anti-money laundering program and sanctions compliance program. The OFAC fine does not directly impact Poloniex users, but it does reflect the company’s regulatory compliance issues and its inability to operate in the US market.
What is the Poloniex Fair Fund and who is eligible to receive it?
The Poloniex Fair Fund is a $10.4 million fund established by Poloniex to compensate customers affected by the company’s regulatory violations. The fund is overseen by the US Securities and Exchange Commission (SEC) and will be distributed to eligible customers who held cryptocurrencies on Poloniex between July 2015 and December 2019. Eligible customers will be notified by the SEC and will have the opportunity to submit a claim for compensation.
Can US customers still use OKX and Binance?
Yes, US customers can still use OKX and Binance, but they must comply with US regulatory requirements. Both exchanges have implemented compliance measures to ensure that they are operating within US law. However, US customers should be aware that regulatory requirements can change, and they should stay informed about any updates that could impact their ability to use these exchanges.
Why did Poloniex receive a fine?
Poloniex received a $10 million fine from the US Treasury’s Office of Foreign Assets Control (OFAC) in October 2020 for alleged violations of US sanctions laws. The fine is related to Poloniex’s failure to implement and maintain an effective anti-money laundering program and sanctions compliance program. The company’s regulatory compliance issues and its inability to operate in the US market are also factors that led to its shutdown.
What are the implications of Poloniex’s shutdown for its users?
Poloniex’s shutdown means that US customers can no longer access their wallets or trade on the platform. All cryptocurrencies still in Poloniex US wallets on December 18, 2019, have been converted to USDC and stored for customers as USDC. The Poloniex Fair Fund has been established to compensate customers who were impacted by the company’s regulatory violations. US customers who want to continue trading cryptocurrencies can use other exchanges that comply with US regulatory requirements.