Poloniex USA was founded in 2013 and quickly became one of the leaders in trading digital assets. As a promising crypto exchange platform for US customers, the cryptocurrency exchanges that took place on Poloniex allowed the selling and buying of many popular digital currencies such as Ethereum (ETH), Bitcoin (BTC), TRON (TRX), and other altcoins.
Before being bought out by Circle, Poloniex confided in the Commodity Futures Trading Commission (CFTC) to gain some light on delivering new assets like Bitcoin and other cryptocurrencies so that there would be no breaking of rules and regulations that were already set in place by the authorities.
However, in 2019, SEC stopped Poloniex services in the US due to an investigation run by SEC (US Securities and Exchange Commission). The grounds of this regulation were due to alleged unauthorized transactions of cryptocurrencies in the country.
We will look at a thorough Poloniex review, focusing mainly on Poloniex for US customers.
What can the ban on Poloniex mean for US customers?
If you were a previous user of Poloniex and a resident of the United States, you need to be aware of what assets you might lose since Poloniex is no longer serviceable in the US. Since all old US users of Poloniex still have ownership over their assets on the platform, they can transfer their assets to another crypto wallet that is legally in use.
With the ban of Poloniex services in the US, there is a possibility that these traders will no longer be able to cash out some assets. For example, even if you have Poloniex alternative wallet, if the current asset on your Poloniex wallet is not compatible with your new wallet, you will lose that asset.
The best way to tackle this issue is to convert all your assets on Poloniex into BTC so that you can quickly transfer them to other alternate wallets or platforms. Since BTC is widely accepted and supported by major crypto platforms, this transfer of assets will be seamless and secure.
Poloniex reopened account access for Poloniex US customers for them to be able to withdraw their funds (which had been converted into USDC) up until April 1, 2020. Here’s a guide on how to log into the site – if you’re looking for information on how to log into Poloniex.com, check out our Poloniex login guide.
Poloniex login via the desktop website:
- Go to the Poloniex US website
- Click on Log In
- Enter all your details, including email address and password
- Click on the verify button
- After the verification process, you can come back to the website and log in
Poloniex login via mobile application:
- Download the Poloniex app
- Launch the app on your phone
- Click on settings
- Tap on the login button
- Enter your details.
- Give a proper email address and password you can access for verification purposes
- Click on the button to verify your account
- Come back to the app and log in
Poloniex login via the mobile website:
- Launch your mobile web browser
- Go to Poloniex.us
- Click on the icon on the upper right-hand side
- Press on the login button
- Enter all your details for the login page
- Give a proper email address for verification purposes
- Click on verify account
- After verification, come back to the browser and log in with your details
Poloniex was already famous among crypto investors and traders because of its low trading fees and interest rates with a large liquidity pool. The backing of financial institutions for Circle provides the insurance of new and improved services for existing Poloniex users outside of the US.
After acquiring Poloniex, Circle, a blockchain service company, started work to make Poloniex the next best thing in the cryptocurrency world. They started by adding new features to the platform after thorough market analysis and even a new coin- the USDC stablecoin (USD Coin) to Poloniex, which bridged the bag between trading and dollars on the Poloniex platform.
Tax reporting for Poloniex US customers:
The best practice for all Poloniex users who are residents of the United States is to gather all transactions done through the platform and keep a hard copy of these documents for tax reporting purposes. If you are no longer allowed on the forum when the time comes for filing your taxes, it is best to have a backup of all your transactions to avoid legal trouble.
Without detailed historical data, you cannot accurately file all your taxes concerning cryptocurrency and crypto trading. To avoid complications, download the transaction history on your computer and save it for future use.
Poloniex US timeline:
- As of 2019 October, US customers could no longer create a new Poloniex account or complete the verification process on Poloniex of already created accounts.
- By November of 2019, existing Poloniex US customers were not allowed to trade or deposit crypto assets.
- Finally, no US users could withdraw any virtual currency from their accounts from December onwards.
Can you use Poloniex from the US?
As of November 2021, all residents and citizens of the United States are prohibited from using Poloniex. According to the SEC order, Poloniex was operating as a trading platform for digital currency without proper registration as an authorized platform. Therefore, due to the violation of security measures set by the authorities, Poloniex is no longer accessible to US citizens or residents of the US.
If you cannot enter your US phone number on the Poloniex platform, it is probably because their operations are banned in the country. You can open a support ticket and ask your queries for further assistance.
Poloniex is not allowed to operate in any part of the country. Before the total ban, it was restricted only in New York, Washington, and New Hampshire.
All US residents and citizens are banned from using Poloniex within the bounds of the country. Although Circle has acquired Poloniex, they haven’t included the US market within their jurisdiction. This will consist of all former customers who have accounts with a US address, a US document, or logging in using an IP address from the US.
Circle allowed the withdrawal of funds for Poloniex users in the US till 2019, after which all withdrawals have been frozen for US customers. The customer support team at Poloniex can no longer help such customers anymore. Instead, you can reach out to Circle Poloniex US support for questions regarding this change.