SEC News: No Action Against Poloniex Only If Gets Acquired by Circle

Following to the Poloniex acquisition by Circle in an undisclosed deal, a leaked slide has brought forth certain information that indicates SEC won’t be pursuing any action against Poloniex in light of this acquisition.

SEC News(Leaked ): SEC relieving Poloniex

It has been just a couple days when Circle acquired one of the biggest cryptocurrency exchange Poloniex in an alleged $400 million deal. Now, according to a leaked news, Securities and Exchange Commission (SEC) has agreed not to pursue any kind of legal action against Poloniex, if it gets acquired by Circle.

Poloniex is one of the top cryptocurrency exchanges that has its profits in billions. Last year, it was one of the top 20 crypto exchange in the world by trading volume. It is specifically known for altcoin trading and acquires the most of its business from the trading of ICO tokens. However, a notable point here is ICOs are basically unregulated securities according to U.S. SEC.

Also read: The Truth Behind CFTC and SEC CryptocurrencyRegulations

The leaked new in part states that:

“Circle has briefed the SEC on the transaction and indicated that upon closing that we will begin the process of registering the new entity with the SEC and FINRA as a Broker/Dealer and in turn as a licensed ATS (electronic trading marketplace).”

The document also states that the SEC was favorable with this approach and further mentioned that it is indicated by U.S. SEC that they would not pursue any enforcement action for Poloniex’s prior activity.

The US’s First Regulated Crypto Exchange

In addition to this, the document contains another section that is titled “The US’s First Regulated Crypto Exchange” that talks about how becoming the first regulated Crypto Exchange can help Circle to list as well as provide a platform for different types of digital tokens. It also includes those digital tokens that would be deemed securities.

With the way the acquisition took place, it seems like something else is also in play here. It wouldn’t be a shock if it somehow it turns out to be a similar case as Coinbase. Given the way, the leaked document talks about SEC not pursuing any enforcement action against the unnamed prior activity. It can be expected that Poloniex might hand over their client data as Coinbase has been asked to by IRS.

What are your views on SEC decision about Poloniex crypto exchange after acquisition by the circle? Let us know your thoughts in the comment section below!