Poloniex Enables Credit Card Purchases and Bank Accounts for Fiat to Crypto Trading Options
The prominent crypto exchange Poloniex has made some important changes recently. Now, the users of the company have new fiat to crypto options and are able to use credit cards in order to buy cryptocurrencies. This is important, as they could only trade crypto for crypto before the latest upgrade.
This new functionality was announced today and it was one of the most important announcements ever made by the company. Fiat to crypto trading will basically change the whole structure of the exchange.
With these new changes, users will be able to link their banking accounts to the company for the first time and to deposit and withdraw funds without having to use cryptos for that. It is an attractive option for some traders, so the company is possibly hoping for an influx of customers appearing soon.
Despite finally opening the door for fiat, users will not be able to either deposit or withdrawal over $50,000 USD (for deposits) and $25,000 USD (for withdrawals) weekly, which is probably due to regulatory issues.
Poloniex has partnered with Simplex, a company based in Israel, in order to have debit and credit card services. The minimum transaction value is $50 USD and there is a fee of 3.5%.
Poloniex Is Changing Since Its Acquired By Circle
The fact is that Poloniex is suffering several changes recently. The company is changing considerably these days, especially after it was acquired by Circle, a company backed by Goldman Sachs, a considerably more traditional institution.
Poloniex was originally created back in 2014 and it stayed this way for four years. Last year, the acquisition happened. However, the company has seen its market share collapse more recently, which is probably a part of the motivation for the changes which are going to happen now.
Several companies such as Binance and Bitstamp are starting to get more focused on the U S. crypto market now and Circle does not want to lose the opportunity, which means starting to accept fiat and becoming more regulated.
In order to stop its market share for deteriorating, even more, accepting debit and credit cards and starting to deal with fiat is an alternative. Another one, which was also being done by the company, was to restart its Trollbox trader forum and to offer daily stake rewards for people holding ATOM tokens.
However, despite having some solid plans for the future, the situation is far from being uncomplicated now. The company has recently discontinued its Circle Pay app and has delisted several tokens for U. S.-based customers.
This means that Circle and Poloniex are still somewhat far from getting what they need from the regulators in order to provide services in the U. S. without any hassle. If the regulators do not help the company, this new plan will probably fail to be successful.