Home News Exchange Bad News For Poloniex Legacy Account Holders As Exchange Forces KYC on...

Bad News For Poloniex Legacy Account Holders As Exchange Forces KYC on Users

May 28, 2018 16:59
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Cryptocurrency exchange Poloniex introduced mandatory KYC measures for its legacy account holders. Poloniex is owned by Goldman Sachs-backed finance company Circle.

Legacy accounts here refer to unverified accounts on the trading portal.

Back in December, the exchange had released a press release in which it had informed its users that, to continue trading, they would have to verify their account through the trading portal.

On that occasion, they had specifically said, “We have recently completed a major upgrade to our customer identification and verification systems. As a result, we will soon require legacy accounts to become verified through the latest version of our verification portal. 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 to avoid any potential interruptions in your ability to trade on the platform.”

Now in a new press release update, the exchange has given its account holders time to verify themselves or have their accounts blocked forever. However, the release does not mention how much time users have.

A user named Whale Panda shared the email notification they had received from the exchange. The mail has been reproduced below.

Source: Whale Panda/Twitter

Users should note that the announcement has not come in Q1 as was previously intimated and a fortnight cannot be termed as “advance notice”.

On Sunday, the exchange said, “We are asking all legacy Poloniex customers who have not provided full identification information in the past to do so now through the Poloniex profile page. This page provides clear instructions on what information is required to verify your account. As soon as you submit this information, we will take steps to verify it and re-enable trading and transactions for your account. 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.”

As can be expected, traders are not happy about this development. One Twitter user going by the handle Altcoin Godson [Polo be trippin’] said, “YOU CANNOT HOLD MY FUNDS HOSTAGE IN EXCHANGE FOR MY IDENTITY. THIS IS CRYPTO. You should’ve given us a warning first, i don’t want to give you my information, i want to leave your platform.”

The exchange declared that, in the event that users do not comply with Know Your Customer (KYC) norms, the exchange will take stringent measures such as disable trading and lending, open orders will be closed, loans will have auto-renew switched off and margin positions will be given an 8 week wind-down period where they can only be diminished or closed.

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