Poloniex, the cryptocurrency trading platform that Circle acquired earlier this year, has recently been responding to complaints made by its clients with regards to their blocked accounts. Stories about the frozen accounts were all over social media and crypto forums last week.
The company has now issued a statement assuring its clients about the safety of their funds while disclosing that the whole confusion is due to identification and verification issues it was trying to straighten out with regulatory agencies.
“As soon as you submit this information, we will take steps to verify it and re-enable trading and transactions for your account. Please rest assured that your funds remain safe and accounted for while you complete this process – you can verify your holdings on the Balances page of your account throughout. Like all registered money services businesses, Poloniex is committed to compliance with all applicable law requiring identification and verification of its customers.”
According to t the company, they have taken steps to increase the speed of the procedure. It said, “We are happy to report that in the past 3 months we’ve seen a 33% increase in customers who are instantly verified, a 77% increase in customers who successfully pass our verification process, and an 85% decrease in customer waiting time for verification.”
Also, there is an ongoing investigation from FCA about cryptos.
The new regulations on cryptos are really not welcome by traders who were used to the old format of things in the crypto sphere. But the companies have no other choice as they are being pressured and scrutinized by the regulators.
According to the UK’s Financial Conduct Authority (FCA) they are currently investigating two dozen unauthorized cryptocurrency-related ventures, and they also have opened seven whistle-blower reports in the 2018 alone related to companies operating in that field. So as to respond to a freedom of information request from accountancy and consulting firm Moore Stephens, the FCA said on Friday that the purpose of the investigation is to determine whether these crypto companies might “be carrying on regulated activities that require FCA authorization.”