Blockchain startup Circle announced on Monday that it has acquired digital currency exchange Poloniex, according to a report from Reuters. The terms of the acquisition have not been made publicly available, but the deal has been rumored to be worth several hundred million dollars.
Poloniex is among the most active digital currency exchanges, with daily trading activity that can at times exceed $2 billion. It also continues to be one of the more popular exchange options for altcoin traders. By acquiring Poloniex, Circle will instantly enter the exchange market as one of the top cryptocurrency exchange players in the industry. Fortune today reported that Circle’s revenues will now be on pace to exceed $1 billion in 2018.
Circle co-founders Sean Neville and Jeremy Allaire emphasized that the company will be focused on ensuring that it helps to lead and shape regulatory policy. Neville said that Circle’s leadership would be “meeting with the SEC as well as obtaining all relevant licensing required for us to support our customers.”
Allaire noted that Circle would also be working to ensure that the exchange complies with KYC requirements - something that has been a problem for Poloniex in the past:
“I’m not sure that 100 percent of prior clients have gone through all their identity verification requests. I know they have a huge backlog of clients in their KYC queues. But obviously now that we operate the company we’re going to ensure that the business is compliant in every way it needs to be.”