According to an announcement on the October 3, Poloniex is planning to strip its US users of the margin and lending products. The move will also see the firm delist its three digital asset; Synereo (AMP), Expanse (EXP) and Gynosis (GNO). The firm advises holders of the assets slated for delisting to desist from trading and withdraw all outstanding balance by the October 10.
Poliniex was recently acquired by Circle, a Dublin based company for a record $400 Million in a move that was widely applauded by stakeholders as reported by Fortune. The company explains that the recent changes are meant to make the firm compliant with regulatory requirements besides not citing the specific regulations.
Poloniex has enjoyed a good run in the digital currencies market since its inception in 2014 but this is not to say that the firm has not run into its fair share of troubles too. In May this year, the firm sent mails to its users that required them to verify their accounts within 14 days after which unverified accounts would be frozen. Come July customers raised complaints that they have been locked out of their accounts forcing the Delaware Justice Department to investigate the firm over the allegations.
It is not clear why the tech firm is making the much publicized changes, but experts speculate that anticipated government crackdown on rogue and unsecure cryptocurrencies trading platforms could have prompted the move. In the recent past there has been concerns about investments security and malicious trading practices especially “manipulation and malicious algorithmic/or bot trading” as reported by New York’s Attorney General, Barbara Underwood.
The firm in a statement assured its affected customers of an uncomplicated transition. A section of the statement read, “In doing so, we’re also making every effort to ensure a smooth transition for customers who may be affected. We will provide more communication in the coming weeks about the final date but it will be by the end of this year and encourage customers to take steps to unwind margin.”