Poloniex Implements Unannounced KYC, Freezes Legacy Accounts

frozen

Poloniex Users Can’t Access Their Funds

Over the weekend, Circle-owned Poloniex exchange froze a slew of user accounts in the midst of implementing a new know your customer (KYC) verification process.

Legacy account users, those whose accounts were verified under Poloniex’s old guidelines, reportedly received emails from Poloniex support requesting that they comply with the new verification method. The email asks that each legacy account provides “a verification photo…as well as a photo of a valid government-issued ID card or passport.” Each account holder has 14 days to complete the verification, under which time account functions will be suspended.

Community members took to a variety of social media to vent their frustrations over the change in KYC policy and subsequent account limitations. Many legacy account holders complain that they were blindsided by the developments, further lamenting that, even after complying with the new verification, their accounts were still frozen.

“They are not giving us ANY time to move funds, its [sic] already frozen, and verification is not working for most!”, Reddit user danglingpiledriver complains on the r/Poloniex subreddit. “They said the following in December, yet never gave us the exact date. its [sic] locked NOW without warning: “The exact date for this deadline will be announced in Q1 2018. While you will be given advance notice before this requirement goes into effect, we encourage you to verify your legacy account now…’”, the post continues.

The Reddit user is referring to a press release Poloniex posted at the end of December 2017 that alerts its customers to the KYC change. After an announcement in Q1 of this year, the release states, customers will be expected to comply with the new KYC policy. Among other suspensions, the release indicates that users who fail to verify their accounts by the announced deadline will have their trading privileges revoked and deposit addresses barred. But it also promises that “[withdrawals] will remain enabled at the daily withdrawal limits prior to the deadline.”

Moreover, it claims, “[if] at any point you verify your legacy account, full functionality will be restored and your daily withdrawal limit will be increased to $25K USD equivalent.”

Problem is, some account holders claim that they didn’t receive an email or warning like Poloniex promised, and as the widespread account freezes indicate, Poloniex also failed to uphold its promise to keep accounts and withdrawals fully-functional in the interim.

On May 27, the company broke its silence and released a formal announcement after the dust settled on social media.

“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,” the release reads.

“Like all registered money services businesses, Poloniex is committed to compliance with all applicable law requiring identification and verification of its customers. If you have any further questions about the identity verification process and steps required, please reach out to our support team here.” it concludes.

As the last quote reveals, the KYC change is likely Poloniex’s attempt to appear more legitimate to US government officials under existing money services laws. Acquired by Goldman Sachs-backed Circle earlier this year, this could be Poloniex’s attempt to show institutional investors that it’s willing to step up to the regulatory plate.

At press time, Poloniex exchange had not responded to CoinCentral’s request for comment.

NEWSLETTER

Newsletter (Sidebar)

  • Hidden
  • This field is for validation purposes and should be left unchanged.

RELATED ARTICLES

What is GourdLords

What is GourdLords NFT? A Guide to Magic Collective’s First NFT Launch

GourdLords is an Ethereum-based collection of 10,000 randomly generated ERC-721. Each GourdLords NFT by the Magic Collective…

Read More
Cool Cats NFT

Cool Cats NFT Guide: Why Are So Many People Buying Cool Cats?

Cool Cats is an Ethereum-based collection of 9,999 randomly generated NFTs. The project and surrounding community have…

Read More

NEXT ARTICLE

Getting Started Gold Bars.

NEXT ARTICLE

What is GourdLords NFT? A Guide to Magic Collective’s First NFT Launch

GourdLords is an Ethereum-based collection of 10,000 randomly generated ERC-721. Each GourdLords NFT by the Magic Collective studio is unique and randomly generated from over 150 hand-drawn assets across six traits.  These traits include:  14 Backgrounds 42 Head and Expression Combos 42 Artifacts 19 Wardrobes 36 Hats The GourdLords world borrows from aspects of fantasy,…

ABOUT THE AUTHOR

Getting Started Gold Bars.

ABOUT THE AUTHOR

Colin is a freelance writer and crypto-enthusiast based in Nashville, TN. When he’s not speculating crypto futures, he’s probably letting his hair down and/or heading to a music festival–because stereotypes exist for a reason.