Poloniex just opened a portal to the old days in crypto. The exchange is now offering instantaneous registration on its platform without KYC approval.
The move has been made possible after Poloniex exited the US markets (under Circle). In the new paradigm of the exchange, the features of Level 1 tier has been considerably altered. The press release post notes,
With Level 1, you’ll have access to unlimited trading, unlimited deposits, and $10,000 per day in withdrawals.
Justin Sun, one of the major stakeholders in the exchange was under a lot of criticism recently on some of the activities on the exchange. However, the entrepreneur’s persistent efforts always make the headlines in the crypto space. Sun tweeted,
How fast can you get a Poloniex account? 20 seconds? #
After Circle killed KYC-free accounts, Poloniex finally restores them today, allowing unlimited spot trading (with daily withdrawal limits) for email-only accounts
He further went ahead in criticising the US-based exchanges as labelled them as “shitcoin casinos.” According to him, Bitcoin on-ramps are the only businesses that will sustain in the long run.
Does it Agree with the Regulators?
According to the recent discussions and laws introduced in the EU and by the FAFT, the move by Poloniex could invite a lot of resistance from authorities.
Recently, a Bitcoin tipping site closed shop due to the uncertainty around the new regulations. Hence, even the lower lier levels of less than $10,000 might not agree well the regulators.
The regulators are pushing towards greater surveillance with the imposition of travel rule. It requires the exchanges to maintain records of the senders and receivers of crypto assets. An e-mail only registration process could drive Poloniex out of Europe as well, concentrating its effort in the Asia-Pacific region.
Do you think the move by Poloniex will increase on-ramp adoption or the regulatory risk are greater? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com