CryptoBridge Trading Platform Shuts Down After Strict KYC is Implemented

CryptoBridge, a U.S.-based decentralized cryptocurrency exchange, has announced today that it will be ceasing all operations, citing several reasons that led to their decision.

The news was announced through an official notice on the exchange’s website, stating that the decision had been made as the exchange lacks the funds to further develop and maintain operations due to market conditions and increasing regulation.

The decentralized exchange accounted for around 320,000 visitors in October, with most coming in from Russia and Bulgaria, according to web analytics firm SimilarWeb. CryptoBridge shared that its vision was to provide a gateway to decentralized cryptocurrency trading and did everything in its power to save the ship from sinking but it seems it came up short.

According to the notice, all deposits will close tomorrow – December 3rd – and withdrawals will be processed after December 15th, adding that users have to withdraw their funds in the meantime. However, the exchange mandates that a KYC (know-your-customer) process is required by the EU laws for them to process withdrawals and it advices users to start the process as early as possible as verification can take up a few days.

CryptoBridge is known for its strict KYC requirement process to complete withdrawals. Notably, two months ago CryptoBridge forced KYC on its users, who were caught by surprise as the exchange had seemingly stolen their funds and forced a hostile KYC process.

At that time, the exchange claimed to have acted under the Fifth EU Anti-Money Laundering Directive, citing that it wanted to ensure that its users were not held responsible for any illegal intentions or money laundering activities.

Subsequently, this made users frustrated with the exchange as it had enforced KYC checks without any warning and were forced to reveal their identity in order to retrieve their funds. Following this, many users questioned whether the exchange was at all decentralized seeing as it now required KYC.

CryptoBridge isn’t the only exchange that had recently shut down. Coinexchange.io, a cryptocurrency exchange that has been running since 2016 also recently shut down, citing similar reasons as CryptoBridge.

Although CryptoBridge has some unique trading pairs, in the last 24 hours the exchange saw a volume of less than $75,000. Presumably, the forced KYC requirement was the last straw which led to more users leaving the exchange and further tanking its volume.

Meanwhile, the exchange noted as well that it will closing down all its social media accounts. However, a Twitter account seeming to be impersonating CryptoBridge, tweeted: “We are only temporarily shutting down. We will be opening a new and improved exchange.”

The exchange was reached for comments regarding these speculations, however hasn’t responded yet.

Poloniex Announces Acquisition of TRXMarket, a Tron-Based DEX

Cryptocurrency exchange Poloniex has just announced its acquisition of TRON-based decentralized exchange (DEX) TRXMarket. Several reports indicated that this acquisition was partly funded by TRON’s founder Justin Sun in addition to some others, who had previously invested in Poloniex Exchange with some noteworthy investment fund.

Poloniex confirmed the news via an official post on Medium, stating that it had bought TRXMarket for an undisclosed amount. According to the post, TRXMarket will operate under the umbrella of Poloniex and all of the exchange’s functions will remain the same, however, under a new name – Poloni Dex.

The post further indicated that users looking for decentralized trading services can find them on the Poloniex official website or by going straight to Poloni DEX.

Poloniex has been one of the top 3 digital currency exchanges. Founded in 2014 by Tristan D’Agosta, Poloniex is a cryptocurrency exchange that offers over 100 bitcoin (BTC) markets available for trading.

Furthermore, the platform provides its customers with a secure trading environment as well as advanced charts and data analysis tools. With no deposit or withdrawal fees, it charges a flat rate of 0.2% on all trading transactions.

In October, Poloniex spun off from Boston-headquartered Circle. Prior to this, Goldman Sachs-backed startup Circle had acquired the cryptocurrency exchange startup in February of 2018.

Poloniex noted that it had acquired TRXMarket to expand its decentralized trading ecosystem in an effort to provide its users with varied trading options – a long-term strategic design that Poloniex had been working on since 2018. This acquisition comes as a significant boost to both Tron and Poloniex as its partnership continues to create ways for more innovations within blockchain and cryptocurrency.

Meanwhile, the newly acquired TRXMarket is the first TRON-based decentralized exchange, and it executes all transactions through TRX smart contracts that are stored safely and transparently on the blockchain. The exchange does not require private keys to make a payment as users’ private assets are securely isolated from the exchange.

TRXMarket is one of the most used DEX on the TRON network, listing amongst the 127 TRON Super Representatives. In addition to that, the DEX it records, on average, a 7-day transaction volume of $30 million and has long been a top ten DApp by transaction volume according to DApp Review.

A spokesperson for Poloniex gave out a statement, in which they explained why the exchange had chosen TRXMarket, emphasizing that they had every reason to choose TRON as their underlying infrastructure over other public chains, who were slow progressing and charged high transaction fees.

“We recognize and value the rate TRON is expanding its ecosystem. Under the leadership of Justin Sun, founder of TRON, TRON’s ecosystem is growing at an exponential speed. After the official launch of TRON public chain in June 2018, within just a year, the total number of accounts on the chain of TRON has exceeded 4.1 million and the daily average number of transactions is over a million, securing a place among the top three public chains in the DAapp ecosystem.”