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Circle Warns Poloniex US Customer Assets May Be Sent to the Government

As part of its release of the cryptocurrency exchange Poloniex, Circle may begin charging fees to Poloniex US customers. And the company warns that any unclaimed digital assets, those in dormant accounts, may be sent to state governments, consistent with relevant regulations for abandoned property.

Also Read: Circle Drops Poloniex Leaving US Crypto Traders High and Dry

Time Is Running out for Poloniex US Clients

Circle, which specializes in digital assets and over-the-counter swaps, announced in October that it had decided to sell the cryptocurrency exchange it controls and that American customers will no longer be able to trade on the platform starting on November 1, 2019. Now the company is urging Poloniex US customers who have not yet done so to withdraw their assets as soon as possible before it may begin charging fees on their accounts.

Circle explains that there are two fees Poloniex US customers who do not withdraw their assets may be subject to: a monthly service fee while a user continues to have assets stored on the platform, and a one-time dormancy fee when an account becomes dormant per the terms of the applicable regulations. Additionally, the company warns that unclaimed digital assets may be sent to state governments, in accordance with the relevant regulations.

Circle Warns Poloniex US Customer Assets May Be Sent to the Government

According to Circle’s plans, on December 16, 2019, it will shut down the existing Poloniex US site and end all access to existing wallets on the platform. All of the cryptocurrencies still in Poloniex US wallets on that date will be traded over some time into the dollar-pegged stablecoin USDC. The company plans to launch a new withdrawal site for customers in the first half of 2020, and then it may charge a service fee for the USDC funds stored on the new site.

Regarding cryptocurrency that won’t be claimed by former clients it warns that “Assets in dormant accounts may be sent to the account holder’s state, consistent with regulations for abandoned property. Poloniex US also may charge inactivity fees prior to sending abandoned property to a state consistent with applicable regulations.”

The company stated in a blog post: “Poloniex US customers must withdraw their assets before December 16, 2019. If Poloniex US customers don’t withdraw their assets before then, they’ll face several actions: They’ll lose direct access to their Poloniex US accounts. Their assets will be traded into and stored as USDC. They may be charged a monthly service fee and/or a one-time dormancy fee.” Luckily, the company reassures Poloniex US customers that they will never be charged more than their total account balance.

What do you think about Circle possibly sending Poloniex US clients’ assets to the government? Share your thoughts in the comments section below.

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Avi Mizrahi

Avi Mizrahi is an economist and entrepreneur who has been covering Bitcoin as a journalist since 2013. He has spoken about the promise of cryptocurrency and blockchain technology at numerous financial conferences around the world, from London to Hong-Kong.

Avi Mizrahi , 2019-12-05 09:30:10 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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