Circle’s Poloniex Exchange Requests New Crypto Policies While Geofencing Some Assets From the US
The CEO and co-founder of Circle, Jeremy Allaire, has recently released a new blog post in which he informs that the cryptocurrency exchange Poloniex will be geofencing a few virtual currencies from United States’ users. The decision comes with a request for larger regulations in the market, specifically in the US, where regulators didn’t apply unified regulations across the country.
Poloniex Delists 9 Digital Assets
According to this blog post, Jeremy Allaire explained that they are deeply frustrated that they have to take these steps. However, he mentioned that they are a direct result of the signalling from the recent guidance related to U.S. regulations and how they are trying to regulate the market.
About it, Allaire wrote:
“We don’t think that they [cryptocurrencies] should be considered securities, but we need to ensure that we comply with US laws. Our decision to geofence assets represents our effort to respond responsibly to the uncertain regulatory climate in America.”
The new geofence is not going to be affecting users from other countries, which will have all 60+ assets available on the Poloniex platform. Allaire mentioned that they have also been advocating on behalf of virtual currencies and blockchain technology. In the blog post, he quotes a phrase they wrote a few years ago in which they explain that there was a real opportunity for the global digital currency ecosystem to work closely with governments and banks around the world and figure out the best way to protect consumers.
Allaire says that they believe that digital assets represent a fundamentally new class of financial instrument that should have a simple classification as a currency, commodity or security. As he wrote, these digital currencies may occupy one, two or three of these categories.
The blog post explains that the Securities and Exchange Commission (SEC) guidance is not easy or straightforward to understand and it relies on laws that have 73 and 85 years old.
They have also said that there are some representatives such as Warren Davidson and Darren Soto that introduced the Token Taxonomy Act and reintroduced it this year. This legislation will be excluding digital tokens from the definition of a security. This aims at providing certainty to companies operating in the bitcoin space.
At the same, Poloniex informs that there are other blockchain companies such as Coinbase, Cumberland and other industry leaders that are working in order to improve crypto standards.
The company explains that its advocacy for crypto has not been limited to the United States. They have also been working in other jurisdictions with the Global Digital Finance group to advocate for information. This firm includes dozens of global industry leaders and it is establishing standards for digital assets.
In addition to it, Allaire said that the International Monetary Fund (IMF) and other international economic bodies have also been working to understand the potential of these technologies. They are also analysing and discussing with other institutions which are the effect that virtual currencies can have on financial stability around the world.
Allaire ended the post explaining that technological innovation takes place at very fast rates and global competition is fierce. Poloniex and Circle urge lawmakers to recognize the unparalleled economic power that blockchain technology and cryptocurrencies have.
There are other counries that have implemented different policies towards digital assets and blockchain technology. Malta and Switzerland are attracting a large number of investors and companies that are locating their operations in these countries. This allows them to have a clear regulatory framework and work in a predictable environment knowing that investors are protected and that their practices are regulated by institutions.
At the time of writing this article, Poloniex is the 79th largest digital currency exchange according to CoinMarketCap. In the last 24 hours, the exchange handled $26.57 million in trading volume.
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