Circle Shuts Down Personal Accounts, Continues Service for Business and Institutional Clients
Summary:
Circle, the stablecoin issuer, is closing personal accounts as of November 30, following a strategic review, but confirmed that business and institutional accounts will continue to operate. The firm mentioned these accounts as "legacy consumer accounts." The decision has sparked speculation, with suggestions ranging from cost-cutting measures to combatting money laundering.
Circle, the issuer of stablecoin, has announced that it will be shutting down individual customer accounts as of November 30, as per an email sent to the firm's clients on the last day of October. The company reassured that the Mint accounts for business and institutional clients will continue to operate as usual. The news first came to light on the morning of October 31 when a cryptocurrency enthusiast, known as Evanss6, shared an email purportedly from Circle on X (the platform previously known as Twitter). The email revealed that due to a "strategic review," personal accounts would be terminated and functions such as "wiring and minting" would no longer be supported. A spokesperson for Circle confirmed the closures to Cointelegraph while reiterating that business and institutional accounts won't be affected. The firm referred to the accounts being closed as "legacy consumer accounts." Speculation around Circle's decision emerged on X with some users proposing possible reasons. Adam Cochran, a crypto analyst, posited that Circle might be closing the accounts because they were being exploited as intermediaries for money laundering, thus depleting the company's reserves. Meanwhile, a cryptocurrency trader by the handle tmnxeq inferred that shutting down such accounts could be a cost-saving strategy, given that the account holders might not be as active as they once were.
Published At
10/31/2023 6:56:58 PM
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