cryptocurrency exchanges

Poloniex has announced that it will delist three assets in a bid to continuously improve and professionalize its platform. The three assets, AMP, GNO and EXP will be delisted on October 10 and users who hold these assets have until October 9 to withdraw their balances. Poloniex also announced that it will remove margin trading for U.S-based clients by the end of the year as it seeks to comply with regulatory requirements in every jurisdiction. On the same day, Winklevoss-owned Gemini crypto exchange announced that it had obtained digital asset insurance from a consortium of leading insurers and arranged by Aon.

Complying With Regulations

Poloniex will no longer offer margin trading for U.S-based clients, the exchange has announced. Margin trading is a process by which traders borrow short-term loans from the exchange in order to purchase more crypto assets than they would ordinarily have which increases their leverage. Poloniex stated in a press release that the changes were part of its efforts to comply with the changing regulatory requirements in the jurisdictions in which it operates. The exchange however promised to make every effort to ensure a smooth transition for all its affected clients. The existing loans will continue to fund traders’ activities and “earn interest for their previously specified duration.”

Poloniex, which was acquired in February for $400 million by Goldman Sachs-backed fintech firm Circle, further revealed that it would delist three digital assets from its platform. The three are AMP, the native token for content monetization platform Synereo; EXP, the native token for dApps development platform Expanse; and GNO, the native token for Ethereum-based prediction market, Gnosis. The three assets will be delisted on October 10, with Poloniex giving its users an October 9 deadline to withdraw their balances.

Qries

While Poloniex was taking a step back, Gemini was taking one ahead as the New York-based exchange announced that it had obtained digital asset insurance via London-based multinational Aon. The insurance will be offered by a “global consortium of industry-leading insurers” and would be arranged by Aon. The insurance coverage is in addition to the FDIC-insured dollar deposits that the exchange already has for its account with State Street.

With the insurance coverage, Gemini aims to give its clients the same security they have always enjoyed with traditional financial institutions, the exchange’s head of risk Yusuf Hussain stated in a press release. The exchange, which is the 47th largest globally according to data from CoinMarketCap facilitating $26 million worth of trades, recently launched its Gemini dollar stablecoin to compete with Tether.

In yet more positive news for crypto traders, Omaha-based TD Ameritrade has announced that it has invested in ErisX, a regulated derivatives exchange and clearing organization that will include digital asset futures and spot contracts on one platform. As revealed by Bloomberg, trading and investment firm DRW Holdings as well as high-frequency trading firm Virtu Financial have also invested in the venture. ErisX is expected to begin offering futures contracts in early 2019 and will allow investors to invest in Bitcoin, Bitcoin Cash, Ethereum and Litecoin.

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