Poloniex announces a spin-off restructuring to exit the U.S. market and focus on international business.

Poloniex exchange announced on October 18 that it will separate from its parent company and be operated by an Asian company, Polo Digital Assets, Ltd. According to industry insiders, the main investor behind this new operator is the founder of a well-known blockchain project. This founder has a close relationship with the founder of Circle and had previously invited the latter to a dinner with a famous investor.

At the end of February 2018, under the leadership of a venture capital firm, Circle acquired Poloniex, one of the world's top digital currency exchanges at the time, for $400 million. However, affected by U.S. regulatory policies, Poloniex's trading volume and market share sharply declined from 58% of the total market in the first half of 2017 to currently over $20 million in daily trading volume, dropping to over 80th place globally. On May 16 of this year, Poloniex announced it would stop providing services for 9 cryptocurrencies to U.S. users.

In a recent announcement, Poloniex stated that it will shift its focus to the international market and will no longer provide services to US users starting November 1. The exchange plans to launch a new international operational strategy and invest $100 million to expand its business. As an initiative to attract users, from October 21 until the end of the year, Poloniex will reduce spot trading fees to zero.

This series of changes reflects the regulatory pressure and market competition faced by cryptocurrency exchanges. Poloniex's strategic adjustments may be aimed at repositioning in a rapidly changing industry environment, hoping to regain a competitive edge in the international market. However, a complete exit from the U.S. market also means losing an important user base, which could impact its short-term business.