Whenever a cryptocurrency exchange changes its terms of service suddenly, there is plenty of reason for concern. This is especially true when that exchange is Poloniex, a platform seemingly plagued by problems, insolvency rumors, and DDoS attacks. According to its new terms, some interesting changes are now in effect. Those changes already have some users up in arms.
Poloniex Updates Its Terms and Conditions Without Warning
The change to Poloniex’s terms and conditions was unusual in its lack of warning. In most cases, companies will let users know which changes will be occurring a few days before they effectively take place. Poloniex did not follow this protocol, which made it seem as if these were quick changes forced upon them by external forces. Whether or not that was the case remains to be seen. Either way, a lot of people were not entirely happy with these changes.
Under its Eligibility banner, the company sought to further clarify that its users may not use the platform for illegal activity. Given the recent allegations regarding BTC-E and laundering of ransomware proceeds, ensuring legal coverage is of the utmost importance for all exchanges right now. Poloniex wanted to make sure no one used ransomware or other illegal methods to obtain Bitcoin and launder it through the platform. This should not worry too many users.
Additionally, quite a few additions have been made to the Account and Initial Funding: Third Party Transfers section of the site. As of today, Poloniex users cannot exchange tokens for money. Rather, tokens will only be exchanged for other tokens. The company wants to ensure that users send their money to correct addresses lest it never be recovered. Moreover, Poloniex does not wish to be held liable for any damages arising from rejected transfers originating from the platform to third-party wallets.
Poloniex wants to distance itself from its users when it comes to determining which laws and regulations apply to their specific trading behaviors. The company will not be helping users out with tax law, as they are not responsible for determining which laws may apply to individual users. Taxation of cryptocurrency is still a big issue, despite there being a few tools available to provide assistance.
The biggest change of all was made to Poloniex’s Arbitration section of the ToS. There have been quite a few rumors circulating regarding the potential insolvency of the Poloniex exchange. According to the new terms, all users trading on the platform waive their right to participate in a class action lawsuit or class-wide arbitration. This addition is not uncommon for cryptocurrency exchanges, yet it will likely only fuel the rumors.
According to the Bitcoinmarkets subreddit, there are quite a few other additions buried deep within the text. For one, stop orders may not execute properly, which is something margin traders will not appreciate. Additionally, there will be no services provided for residents of Washington, New York, and New Hampshire for the foreseeable future. Finally, all content posted on the website or social media related to Poloniex is to become the sole property of the company. It is a rather vague statement, but certainly one to keep an eye on.