The U.S. based crypto-asset exchange, Poloniex, will be removing products pertaining to margin trading and lending on their platform by the end of the year. As regulatory compliance is now essential for exchanges across the U.S., Poloniex is the latest exchange to clean shop to ensure they are in-line with regulatory requirements
Poloniex announced their plans on October 3 to remove margin trading and lending products, alongside the delisting of three other crypto-assets for U.S. customers on their platform by the end of 2018. Although the exchange did not single out any specific regulation in the announcement, regulatory compliance is the main goal.
Changing Times for Poloniex
Poloniex has been operating as a crypto-asset exchange platform since 2014 but was taken over by the Dublin-based payment tech company, Circle, in 2018 for a reported $400 million. According to CoinMarketCap, the exchange is ranked 38th by adjusted trading value.
The official statement from Circle in regards to the changes at Poloniex explained:
These changes are part of our ongoing commitment to ensure that Poloniex complies with regulatory requirements in every jurisdiction.
Circle added that they will release more news in the coming weeks in regards to the exact termination date of their lending and margin trading products but urged existing customers to take steps in preparation for the changes. Any existing loans between Poloniex and their customers will remain in place for the specified duration.
Poloniex will also be delisting three crypto-assets from the exchange on October 10. The axed cryptos are Gnosis (GNO), Synereo (AMP) and Expanse (EXP). Those trading in these crypto-assets on the exchange will have to halt their trades and withdraw balances before the stated termination date. Holders will have 30 days to withdraw funds from the delisted assets.
These plans come at a time when crypto-asset exchange compliance is at fever pitch as the Attorney General of New York State, Babara Underwood, recently referred three major exchanges, Binance, Gate.io and Kraken for investigation for possible violations on New York State laws on digital assets on September 18.
In the face of ongoing regulatory crackdowns across the U.S. crypto-asset exchange sector, it looks like Poloniex is trying to keep one step ahead of the curve with its plans to remove margin trading and lending products for their platform.
