The Ultimate Poloniex Review | CoinStats Blog

Poloniex, a central cryptocurrency exchange that is open to both experienced and new traders, allows novices as well as more advanced traders to trade on it. The IEO Launchpad is part of the decentralized exchange. Poloniex offers the best cryptocurrency trading fees, the largest range of markets and advanced trading types as well as margin trading and crypto lending.

In a settlement enforcement case, announced August 9, 2021, SEC sanctioned Poloniex, LLC, which is a cryptocurrency trading platform, with a fine of over $10 million. Poloniex, LLC was not registered as a national security exchange. Poloniex was ordered by the SEC to stop future violations, and to pay more than $10 million in penalties.

You will find everything you need about Poloniex, including the reasons the Polonidex platform for decentralized trading is being closed or exiting the United States.

Principal Features

• Company Name: Poloniex Digital Asset Exchange Limited
• BAT, BCH BTC and DGB cryptocurrencies are listed on Poloniex Exchange Platform: ETC, ETH. LOOM. LSK, LTC. STRAT. SC. XLM. XMR. XRP. And many other.
• Fiat currencies are listed on the Poloniex cryptocurrency exchange:
• Trade fees vary depending on who is making and taking the trade. This ranges between 0.05 and0.25% for takers or 0-0.15% in the case of makers.  
• Drawal fees are dependent on withdrawal amount
• Deposit fees: No deposit fees
• Payment methods accepted
• Supported countries: The Poloniex Exchange operates worldwide, without any geographic limitations. It’s shutting down its services in the United States.

Polonidex: When is It Closing

Poloniex’s popular Polonidex cryptocurrency exchange decentralized by Poloniex began to close down in 2019 its crypto margin trading platform and loan products for US users. It stated: “These changes are part of our ongoing commitment to ensure that Poloniex complies with regulatory requirements in every jurisdiction.”

In 2019, it faced difficulties due to uncertainty within the U.S. regulatory environment for cryptocurrency. The exchange reduced its list of crypto coins to U.S. investors, and this led it to continue reducing their availability.

Poloniex stated that they had spun out of their parent company Circle and formed Polo Digital Assets to serve the global trading needs.

The newly formed company was registered in Seychelles – a remote island in the Pacific known for crypto favorable regulations. It’s also a home for other unregulated cryptocurrency exchanges like BitMEX, Prime XBT, and Binance. 

Poloniex’s new leadership has removed the AML/KYC check and made it possible for traders to trade directly on the platform without verification.

The following is the timeline.

October 18, 2019, – U.S. persons were no longer able to create or complete the set-up of a new Poloniex account.

November 1, 2019, – U.S. users were no longer able to execute trades or deposit assets.December 15, 2019, – U.S. users could withdraw their crypto at least through this date.

Poloniex Background and History 

The Poloniex trading platform was first launched in 2014 by Tristan D’Agosta in Delaware, United States. D’Agosta has a background in music and previously established the Polonius Sheet Music company in 2010.

After Mt Gox collapsed, which was the biggest cryptocurrency exchange of the day at that time, Mt Gox was shut down.

Poloniex lost approximately 12% of their BTC in a hack that occurred shortly after its launch. This was worth around USD 50,000. The team responded to the hack openly by offering total reimbursements for the stolen 97 bitcoins out of D’Agosta’s company profits. After the hack, D’Agosta and his team have implemented automatic auditing to ensure that the whole exchange is secure, strengthened security on all servers, and changed the process of commands so that exploits like those used in March are impossible. It protects the user’s privacy and keeps them in encrypted form so they can be used only for legitimate purposes. 

When it was the first exchange to list Ethereum in 2016, the news made headlines. After that, the exchange’s trading volume increased, and it became one of the more popular exchanges in terms of liquidity.

Circle, a US-based payment firm, acquired Poloniex in 2018, with the goal of making Poloniex America’s first cryptocurrency exchange. This acquisition cost USD 400,000.

Poloniex, a trading platform that allows for the delisting of most coins listed as securities, has implemented KYC checks and is now regulatory compliant. Another issue was Poloniex’s slow customer support, reachable via a support ticket system. It’s been reported in Poloniex reviews that some customers had been waiting for several months before they heard back from the exchange. Poloniex had lost thousands due to poor customer service.

Credit and debit card payments became available in over 60 countries starting July 2019. This feature is possible thanks to a partnership between Poloniex, the payment processor Simplex.

The parent company Circle was renamed Polo Digital Assets Ltd in November 2019. Its headquarters are located in Seychelles.

Polo Digital removed the U.S. resident exchange from its website. The U.I. was also updated. Both on the mobile and web versions.

In 2021, Poloniex remains a popular digital currency exchange with some of the market’s lowest trading and withdrawal fees.

Poloniex – What’s it all about?

Poloniex has a large daily trading volume of over $100 million. With a market capital of $14 million, it is ranked 83rd in terms of Bitcoin trading volume. The Poloniex exchange provides cryptocurrency-to-cryptocurrency trading on over 100 pairs, margin trades, unlimited spot trading, and lending on a desktop and app. To list tokens, users who have been verified can do so on the Poloniex platform.

Poloniex provides its customers with a range of technical and analytical tools as well as more than 140 exchange directions. Poloniex’s fees range from 0 to 0.2%.  There have been no security breaches since March’s attack. It offers strong protection against DoS attacks through two-factor authentication and cryptographic signatures-based DNS caching protection. Role accounts protect private information. Registry lock prevents unauthorized modifications to websites, emails confirmations, and I.P. lockouts.  The majority of Poloniex’s user funds are held in cold wallets.

An I.D. can be added to the new user’s registration. This will increase the maximum withdrawal limit. You can also use the card to verify your address. The system doesn’t work with fiat currencies and, users trade using altcoins.

Closure Polonidex: What are the Factors Behind?

We don’t know the reasons behind Polonidex closing its doors or the reason it decided to stop operating in the United States. However, there are several possible reasons for it. 

Integration of too many tokens

Before BitMEX, Poloniex was a popular crypto exchange for margin trading.

Poloniex, which had too many digital assets and tokens but not enough customer service, was one reason for the company’s decline. Users began to protest the declining quality of services. It was not meant to generate noise; it was intended to let the complainants know who might be able to help them.

Circle became involved in personalizing and optimizing the exchange for efficiency, compliance and security. The exchange decided to eliminate several tokens, and also shut down margin trading.

Several Poloniex users reacted positively to this new development by Circle, hoping it was going to solidify the exchange’s position in the United States crypto market. Others, however, were disappointed by the delisting and closing of margin trading. 

Shut down of 1Broker

1Broker, a US-based cryptocurrency exchange platform, was closed by the Federal Bureau of Investigation and U.S Securities and Exchange Commission. The Federal Bureau of Investigation and U.S Securities and Exchange Commission investigated illegal securities dispersion. It is possible that this has caused trades to become more cautious in America regarding digital currency support and trading activities.

Crypto exchanges are now more proactive in cooperating with authorities and implementing better anti-money laundering (AML) processes.

Poloniex LLC, also known as Poloniex (Poloniex), operated under domain name poloniex.com. The trading platform that operated on Poloniex.com only allowed it to match buyers with sellers. It had no United States presence, didn’t employ individuals in the United States, held no depositors or bank accounts in the United States. Poloniex users used the website entirely, as it was controlled and owned overseas.

Regulation of cryptocurrency

Users must go through many centralized exchanges to access them. KYC, AML,Other processes that are within the scope of regulatory authorities

Money laundering and financing terrorism are the main concern of regulators. Because cryptocurrencies are easily kept secret and have low conversion costs, they can be used to fund black markets. To prevent unlawful acts, KYC and AML are required.

A majority of Poloniex clients believed that Circle’s acquisition and takingover of Poloniex were an honest move. Failures of epic proportions. The majority of users moved on after KYC was imposed by the exchange. 30%Other funding and coins. 

All of this could’ve contributed to the Poloniex decision of closing down, spinning out from Circle, and leaving their U.S. customers behind. 

SEC Registration Provisions Violation

Poloniex may have been affected by its relationship with another company. SEC registration. United States Securities and Exchange Commission (SEC) has accused crypto exchange platform Poloniex of violating Securities Trading Regulations.

According to the SEC’s announcement, Poloniex provided trading in cryptocurrencies that are considered securities for U.S investors between July 2017-November 2019 on its platform without having registered as a securities brokerage under Section 5 of The Exchange Act.

The SEC’s indictment also stated that employees of the exchange actively sought to circumvent securities regulation in a bid to increase the company’s market share. According to the Commission’s enforcement chief Kristina Littman:

“Poloniex chose increased profits over compliance with the federal securities laws by including digital asset securities on its unregistered exchange. […] Poloniex attempted to circumvent the SEC’s regulatory regime, which applies to any marketplace for bringing together buyers and sellers of securities regardless of the applied technology.”

According to the SEC’s announcement, Poloniex has elected to neither admit nor deny any wrongdoing but will pay a fine of about $10.3 million while agreeing to a cease-and-desist order. Poloniex will be paying $8.48million of the total disgorgement fine, as well as an additional $1.5 million civil penalty and more than $403,000 prejudgment interest.

The Bottom Line 

Poloniex exchange platform had its ups and downs for several years; however, it’s committed to meeting regulatory requirements and improving its service. 

This trading platform has the most affordable cryptocurrency trading fees, margin trading, borrowing and a decentralized exchange. It also offers IEO launchpad access. It’s suitable for beginners and more experienced traders due to its clear interface. It’s to sign up and start trading right away.

Yet, Poloniex remains unregulated, so don’t leave significant amounts of crypto assets on the exchange for long.

Poloniex won’t be shutting its doors anytime soon. You can access the website from your mobile device. You can also trade with many other cryptocurrencies through it, even if you’re not in the United States. 

You can find the most recent news from Poloniex, as well as detailed information about several of the fastest-growing and largest cryptocurrencies on CoinStats. This is one of the top crypto platforms.

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