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Poloniex to eradicate margin trading and lending for American clients

Poloniex to eradicate margin trading and lending for American clients
Oct 7, 2018 by Rico Wise

Poloniex, the cryptoexchange that was acquired by Circle in the beginning of this year, has released a statement about taking down its margin and lending production on the territory of the United States. IN addition, it discontinues servicing three digital currencies. The firm pointed out that the removal of some of its products is made to make sure that the cryptoexchange and its operations fall in line with the legislation, however any specific legislation was not specified.

Starting from October 10, Poloniex will stop providing its services for Gnosis, Synereo and Expanse digital currencies. The clients will have the opportunity to finish all trading and perform withdrawals of their funds up to November 9, 12:00 ET. According to the data provided by CoinMarketCap, the market capitalizations of the aforementioned currencies as of October 4, accounted for 23,992,956 USD, 5,137,016 USD and 3,125,636 USD respectively.

After the specified time on November 9, the cryptoexchange will stop processing any withdrawals for the delisted currencies. Their owners will be given a period of 30 days to withdraw the money. The deadline might receive a prolongation, if the availability of the digital wallet is compromised. Should such occasion take place, the holders of the respective contracts will receive a corresponding e-mail notification.

The delisted funds will be stored by Poloniex in a cold storage. This is done to tackle the issue, when clients. Are unable to withdraw their funds because of the circumstances that do not depend from them, e.g. network outage. The funds will be stored like this for a limited period of time for clients to withdraw them as the network goes back online.

The cryptoexchange provided no final dates for the removal of margin and lending products in the US, however it promised to issue a week prior notice to the clients before actually eliminating the market. Open loans will remain as such and the accrual of the interest will be performed for the period previously established.

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