Poloniex & Circle Relationship Explained

Poloniex has come under fire from US residents and customers for alleged money laundering. The Poloniex platform was accused of unregistered trading of crypto assets. Under US applicable laws, the entire Poloniex team, including former employees, were thoroughly investigated by the OFAC and were fined more than 10 million US dollars for their unlawful services.

Following the news, even the Chinese authorities have banned Poloniex services in the country. However, according to The Verge blog post, one of the major investors of Poloniex, Justin Sun, called all these allegations as “fabricated storytelling” and denied all the charges against the company. 

In this article, we will talk about Poloniex and its relationship with Circle in detail. Continue reading to know more. For a full overview of the platform, read our complete Poloniex review.

What is Circle?

Circle Internet Financial Ltd. is a blockchain service company that bought Poloniex since its discontinuation of services in the United States. As one of the promising exchange commissions for US customers, Circle acquired Poloniex as a third-party cryptocurrency exchange platform. 

The plans of this partnership have their roots in a multisided market that represents tokens to be used for creative productions like music and art along with real estate, physical goods, and service leases, among others.

Circle houses two primary services to its customers- Circle Pay and Circle Trade. Circle Pay is a money transfer app for crypto traders, and it was created to make mobile payments and other finance-related transactions accessible. 

On the other hand, Circle Trade is a crypto trading service for hedge funds and whales. It is a high-volume trading platform known to be one of the largest liquidity providers when it comes to digital assets. In simple words, Circle Trade acts as a banking system for cryptocurrencies for all its users. 

SEC Poloniex 10M Circle Poloniex:

In 2021, the Securities and Exchange Commission (SEC) announced that Poloniex US Circle concurs with the payment of 10 million dollars as settlement charges for operating an unregistered platform in the country. 

Circle’s mission is to help users worldwide to connect and exchange crypto seamlessly. At the same time, Circle is also partnered with SeedInvest, an equity crowdfunding platform, to build the USDC stablecoin business. Thanks to the acquisition of Poloniex through the sole discretion of Circle, the company can now provide more services to its users as a global market for tokens that is open for all users around the globe. 

Poloniex & Circle relationship

The Poloniex & Circle relationship blossomed because the Poloniex platform could only convert crypto into other cryptos. At the same time, the partnership with Circle allowed the conversion of crypto funds into real money. So when you look at it from a business point of view, the growth of Poloniex can be credited to this relationship that allows Circle’s banking links with the retail crypto trading from Poloniex. 

Circle X:

Since the Poloniex transaction, Circle has named a new term known as Circle X, which is the concept that the future of exchanges on the platform will be dynamic. There will be no specialized breakdown of token types. Instead, the platform will be home to a wide selection of tokens that symbolize assets and other equities. 

The future of Poloniex under Circle’s care looks promising, with tons of new token introductions representing traditional and new assets in the crypto world. The central idea is to combine the trading of stocks, money, tokens, and other assets into one entity so that trading can take place on one platform.

This revolutionary idea brought forward by Circle will make Poloniex’s newest venture competition for existing similar platforms. The executives at the heart of this transition believe that the platform can soon integrate fiat currency, making it more dynamic and versatile for users.

Circle’s plan for Poloniex:

Goldman Sachs Group Inc. backs Circle, which means the company enjoys heavy investments. As a matter of fact, the company is on its way to becoming a leader in the booming crypto industry, especially after the acquisition of Poloniex. 

Poloniex, under the direct supervision of Circle, now known as Circle Poloniex, will offer users a fresh crypto exchange platform where traders can access many additional cryptocurrencies. 

The acquisition of Poloniex by Circle creates a best-case scenario for both parties since Circle customers finally have the opportunity to start trading in crypto. In contrast, Poloniex customers can use the platform run by a standard regulatory body with a higher venture capital than ever. 

In such a case, the benefits enjoyed by Poloniex are far-reaching, especially since the platform was struggling to keep out of troubled waters. Poloniex’s controversy about money laundering and illegal operations in the US created a dent in the company’s reputation. Still, after Circle’s intervention, Poloniex could be looking at a bright future in the crypto world.

The number one benefit for Poloniex through this transaction is the air-tight, well-oiled regulatory body of Circle. The new legal framework that Poloniex comes under will help grow the company to greater heights. 

Overall, the new concept of Circle Poloniex seems to have a lot of customer appeal, starting from quicker and easier transactions to better Poloniex customer service. It looks like Poloniex is ready for redemption with aid from Circle.

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