Recently, Circle’s Poloniex exchange announced that they would be delisting several digital assets from their platform. The exchange further confirmed that by the year-end, they would be “removing margin trading for US-based customers”.
Circle explained the reason for removing margin trading and lending of products for all customers from the United States. According to the organization, these steps were taken to guarantee that the exchange is compliant to “regulatory requirements in every jurisdiction”.
However, the platform assured users that all existing loans will remain open until the final dates for the removal of margin trading will be announced. Although the announcement is set to occur towards the end of the year, users have also been assured that they can continue to “fund positions and earn interest for their previously specified duration.”
Margin trading refers to users trading a digital asset with borrowed funds. In margin trading, when a trader borrows funds, they can open a position in the market. The borrowed asset forms the collateral for the loan taken from the broker. Profits are made by settling the loan when the price is lower.
Furthermore, Circle stated that three digital assets which will be delisted from Poloniex are Synereo [AMP], Expanse [EXP], and Gnosis [GNO]. The tokens will be delisted on Wednesday, 10th of October.
Poloniex customers are required to end trading and withdraw funds with said digital assets by 9th October, following which withdrawals will be disabled and assets fully decommissioned.
Circle has assured its users that they would extend the deadline for the delisting if users are found losing access to their wallets. Additionally, the platform would approach holders of affected assets through email and provide assistance.
Expanse [EXP] in response to the announcement, stated on Twitter:
“We would like an explanation for the sudden delisting of $EXP. We have been listed on polo for nearly 3 years. We show continuous development and growth with our platform and community. Your team didn’t even give us a courtesy email or anything. This is low down… “
A Twitter user named RyanICNN added:
“No margin trading means I’ll be finding a new exchange in all likelihood. This is a disappointing turn.”
AeonGlacial, a Twitterati said:
“Seriously, there is no point to owning an account on this exchange. The margin and p2p lending is what made Polo great. Farewell, it’s been real…I guess.”
Grindtilwegetit, another Twitterati stated:
“Hey, let’s get rid of the one thing we offer our US customers that nobody else does… Seriously, there’s literally zero reasons to keep anything on polo at this point. Well thought out plan, polo team!”
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