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Circle May Start Charging Poloniex US Customers

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Crypto services firm Circle, backed by banking major Goldman Sachs, urged the U.S. customers of cryptocurrency exchange Poloniex to withdraw their crypto assets before December 16, 2019. Circle said it may begin charging fees to Poloniex US customers if they do not withdraw their assets as soon as possible.

The Poloniex team and leadership were spun-out from Circle in mid-October into a new independent international company, Polo Digital Assets, Ltd.

The U.S. customers were not able to trade on the Poloniex exchange from November 1. However, they can still access and use their wallets and withdraw funds through wallet and custody services operated by Circle until at least December 15, 2019.

Circle said it will begin to charge two fees from Poloniex US customers who do not withdraw their assets in time.

It will charge a monthly service fee while U.S. customers continue to have assets stored on the Poloniex platform, and a one-time dormancy fee when an account becomes dormant per the terms of the applicable regulations.

Meanwhile, Circle said the unclaimed assets may be sent to state governments, consistent with applicable regulations.

Apart from charging the fees, the U.S. customer will lose direct access to their Poloniex US accounts and their assets will be traded into and stored as Circle's native USD Coin (USDC).

Circle was the first in the crypto industry to be granted the virtual currency license called BitLicense in September 2015. The license is aimed at monitoring and regulating operations of cryptocurrencies such as Bitcoin and cryptocurrency-related products being offered in the State of New York and to New York residents.

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