Circle to Close Consumer Accounts by November 30, Business and Institutional Accounts Remain Active
Summary:
Circle, a notable stablecoin issuer, will terminate all consumer-based private accounts on November 30, as disclosed in an email notification to customers. Whilst individual accounts are set for closure, business and institutional "Mint" accounts will remain operational. Circle's decision is part of a strategic review that aims to phase out "legacy consumer accounts." The decision has spurred speculation in the crypto community, with theories suggesting a depletion of reserves and cost-cutting measures as potential reasons.
Circle, a prominent issuer of stablecoin, is set to close all private consumer accounts on November 30, as divulged in their recent email notification sent to customers on October 31. Via an email to Cointelegraph, a representative from Circle confirmed the upcoming closure of individual accounts but reiterated that business and institutional "Mint" accounts will stay active. On the morning of October 31, a screenshot of an alleged email from Circle to its customers was posted by crypto user Evanss6 on X platform (known formerly as Twitter). The email revealed Circle's strategic review that resulted in the decision to close individual accounts. Customers were informed of the discontinuation of wiring and minting functionalities in their accounts with the final closure slated for November 30. Reiterating on the matter, Circle's representative told Cointelegraph that while they are phasing out the so-called "legacy consumer accounts", business or institutional Circle Mint accounts will continue to operate. Meanwhile, on the X platform, crypto enthusiasts pondered the probable reasons for Circle's decision. Adam Cochran speculated that Circle might be facing a depletion of its reserves due to a web of individual accounts serving as money-laundering mediators or "KYC mules", thereby propelling the need to terminate these accounts. Another crypto trader, tmnxeq, proposed an alternative theory - the account closures could be a measure to reduce costs or restructure. Circle, referencing individual accounts as "legacy consumer accounts", hinted at a potential decrease in the usage of such accounts compared to the past.
Published At
10/31/2023 6:56:00 PM
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