Circle could confiscate balances if the US does not stop using Poloniex
It warned that US merchants have no choice but to stop using their cryptoactive platform
In a blog post on December 3, Circle warned US merchants that if they did not stop using the cryptocurrency exchange parent company Poloniex could charge fees to US users and even confiscate their full balances If they don’t withdraw their funds.
“There are two rates for Poloniex customers in the US who do not withdraw their assets: a monthly service fee while a user continues to have assets stored on the platform, and a single inactivity fee when an account is inactive according to the terms of the applicable regulations. Unclaimed assets can be sent to state governments, in accordance with applicable regulations,” said the blog post.
The deadline for the withdrawal of funds will be next December 16, as established by the technology company, and in the case the user does not loggin, fees that theoretically add up to the total balance of the account may apply.
Circle also added that users could lose access to their Poloniex accounts and that the platform could convert unclaimed tokens into their stable currency, USD Coin (USDC). “US Poloniex customers will never be charged for more than the total balance of their account.”
Apart from being the parent company of the cryptocurrency Exchange Poloniex, Circle is considered one of the most outstanding peer-to-peer payment technology companies in the cryptoactive market. Circle’s mobile payment platform, founded by Jeremy Allaire and Sean Neville in October 2013, allows users to maintain, send and receive traditional fiat currencies.