The Poloniex exchange temporarily disabled its XRP, Tron, and Ethereum wallets for maintenance, the second time it had done so for XRP in a week. The maintenance comes amid an investigation by a Canadian regulator pointing out that Poloniex has been operating illegally.
Poloniex, one of the oldest and most popular exchanges in the world, has recently deactivated its XRP, Tron, Ethereum, and ERC-20 tokens wallets, claiming maintenance. The maintenance was delivered at a time when a Canadian regulator filed submissions against the exchange, claiming it has been operating illegally.
Poloniex first made an announcement on which it clarified the deactivation of its XRP wallet on May 24. Poloniex did not offer any extra information regarding the maintenance entailed. The next day, Poloniex re-enabled the XRP wallet. Without blocking, yesterday, it deactivated the wallet again, announcing the problem on Twitter through his support page. Later it would re-enable the wallet.
Other wallets that it had temporarily halted for maintenance include Tron (TRX) and TRC20 tokens, Ethereum (ETH) and ERC20 tokens, Polkadot (DOT), Bitcoin Income (BCH), and Bytecoin (BCN).
XRP has experienced an informal decay in the last hours, right in parallel with the typical market trend. It has lost more than 5 percent to trade at $ .8745. It set an intraday high at $ .922 and a small one at $ .7951. The development of such operations has also been limited by 11%, to reach 5.3 billion dollars.
Canadian Regulator are Watching Poloniex
For Poloniex, maintenance issues are not the only bad notification it has faced recently. The Ontario Securities Commission has claimed that the exchange has been working illegally.
In a statement of allegations, the OSC revealed that it sought to hold Polo Digital Property accountable for ‘disregarding Ontario’s title law and pointing out that crypto trading platforms that flout Ontario’s title law will face a regulatory bond ”.
The regulator highlighted that Poloniex is subject to Ontario’s title laws because it serves as a provider of securities and derivatives. It has insisted that such platforms should be registered for some time, the last time was on March 29, 2021, the regulator stated. At the time, he gave the platforms three weeks to get dishonesty or face a regulatory bonus.
Despite the warning, Poloniex did not contact the Commission to initiate discussions on compliance.The OSC wants the exchange to immediately stop offering its services to Ontario residents. On the other hand, it wants Poloniex to pay an administrative fee not to surpass one million Canadian dollars (830,000 US dollars). It must even meet the costs incurred by the Commission in the investigation and the hearing.
Poloniex is one of the most popular cryptocurrency exchanges on the current market. Born in 2014, it soon climbed high, becoming one of the leading Bitcoin and cryptocurrency trading platforms in the United States of America and one of the most prominent exchanges in the world.
By: Jenson Nuñez
