At one point, Poloniex used to be the go-to altcoin trading destination for many cryptocurrency enthusiasts. However, in the recent past, that scenario has changed quite drastically.
More Regulatory Scrutiny for Poloniex
Over the past couple of months there have been numerous incidents where Poloniex has locked out users from accessing their funds. This has caught the attention of the Investor Protection United of Delaware’s Department of Justice. Regulatory scrutiny is the last thing any cryptocurrency exchange needs, especially when it’s from an agency on the level of the DoJ.
As per the latest news reports circulating over the internet, the agency has been sending inquiries to Poloniex users since last week and various individuals have been asked about how they perceive the company’s services.
More on the Issue
It is important to note that this sudden interest by the IPU is not necessarily the result of an ongoing investigation. It is true that the Poloniex subreddit has seen a lot of complaints come in over the past few weeks. At the same time, with so many new users flocking to cryptocurrency exchanges, that is not surprising.
How this email inquiry will affect Poloniex and its users, remains to be determined. There is no clear indication as to whether or not an official investigation will be launched. Poloniex does not enjoy the best of reputations due to account freezes and new KYC procedures. However, it doesn’t appear as if anything nefarious is going on.
Cryptocurrency exchanges are bound to face more regulatory scrutiny in the years to come. These centralized trading platforms control a lot of user information and act as custodians for customer funds. Poloniex has seen a fair few issues over the past few years, and it seems as though most of those problems have yet to be addressed despite numerous user complaints.
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