In a "bittersweet" Medium blog post, Poloniex has informed its followers that it is spinning out of its parent company Circle. From now on, the exchange will operate as an independent company called Polo Digital Assets that will be backed by an unnamed Asian investment group.
Because of this move, Poloniex will be able to focus on its international expansion, which couldn't be achieved under the Circle leadership.
This spin-out will finally give Poloniex the freedom and capital to compete in the international market, and the leadership team of Poloniex will be equipped to scale and grow beyond the scope of what Circle can provide.
This is bad news for the exchange's remaining US customers who won't be barred from trading on the exchange starting from Nov. 1. They are allowed to withdraw their funds until Dec. 15.
Circle purchased Poloniex for a cool $400 mln back in February 2018, which was the first eight-figure buyout of a crypto exchange.
The spinout came after the crypto unicorn made an announcement about moving Poloniex to Bermuda due to the anti-crypto sentiment in the US.
Anthony Pompliano of Morgan Creek Digital predicts that more companies will start leaving the US if there is no regulatory progress.
Poloniex is moving out of the US to focus on international markets.— Pomp ? (@APompliano) October 18, 2019
They won’t even let US customers use their products moving forward.
This will become the norm if the US continues to create an overbearing and/or uncertain regulatory environment.
We must get it right.
Circle CEO Jeremy Allaire has called for more regulatory clarity on multiple occasions, singling it out as one of the main impediments to the industry's growth.