Users Have Been Withdrawing From Poloniex Following Circle Spinoff, Data Shows

  • Users have begun withdrawing funds from Poloniex following Circle's decision to move on from the exchange.
  • Poloniex BTC and ETH holdings reached their lowest point since early 2016.

Users have begun withdrawing their funds from the crypto trading platform Poloniex after it spun off of Circle Inc., and after the latter warned U.S. users' balances on the platform would be subject to fees.

According to data compiled by CoinMetrics, Poloniex clients quickly began withdrawing their bitcoin and ether from the platform following Circle’s acquisition last year. The supply of BTC and ETH plummeted further after the exchange became an independent company, leading to Poloniex’s lowest level of crypto holding since early 2016.

Users have been frustrated with the exchange over a series of coin delistings, including the removal of DigiByte earlier in the month shortly after its founder criticized it and TRON's Justin Sun, who admitted to having invested in it. One Twitter poll with over 955 votes found that 84% of respondents were considering closing their Poloniex account following the delisting. 

In addition, Poloniex has yet to repay users following the CLAM coin incident, during which the exchange made up for the loss of 1800 BTC by taking a percentage of client funds. 

Featured Image Credit: Photo via Pixabay.com

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Two Brazilian Crypto Exchanges Close Following Change in Tax Laws

  • Two Brazilian exchanges have been forced to close in the face of strict new regulations.
  • Exchanges are required to keep track of all transactions made with cryptocurrency or pay fines. 

Two Brazilian cryptocurrency exchanges have been forced to shut down following the enactment of new tax laws. 

Following reports of rampant cryptocurrency-related fraud in 2019, Brazilian politicians have created and enforced new tax regulations for the industry of cryptocurrency. 

According to a report by Bitcoin.com, exchanges Acesso and Latoex are two of the first casualties of the increased regulation. Both exchanges have decided to end operation, rather than pay the hefty fines and comply with strict regulation in the face of shrinking trading volume. 

Pedro Nunes, co-founder of Acesso Bitcoin, told Portal do Bitcoin, 

After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.

The new regulations, implemented in August 2019, require traders and brokerages to report all transactions involving cryptocurrencies. Failure to comply results in penalties ranging from 500 BRD to 1500 BRD ($120 - $360). 

Exchanges say that compliance with the new regulation requires expensive investment into new resources, which has been untenable for smaller and less profitable organizations.

Featured Image Credit: Photo via Pixabay.com