Stablecoin issuer Circle will shut out client or particular person accounts on November 30, in line with emails acquired by Circle prospects on October 31. In an e-mail to Cointelegraph, the stablecoin issuer confirmed that it’s closing the accounts however confirmed that enterprise and institutional “Mint” accounts will stay accessible.
On the morning of October 31, crypto consumer Evanss6 posted a picture to X (previously Twitter) of an e-mail that Circle prospects allegedly acquired. The e-mail said that particular person accounts are being closed “as a part of Circle’s strategic assessment.” The shopper was instructed that “wiring and minting functionalities” would now not be supported and that the account can be closed on November 30.
In an e-mail to Cointelegraph, a Circle consultant confirmed that the accounts are being shut down however that enterprise and institutional accounts will stay open:
“Circle is phasing out help for legacy client accounts and has notified particular person customers of this choice. Account closures don’t apply to enterprise or institutional Circle Mint accounts.”
On X, some crypto customers speculated in regards to the motive for Circle’s choice. Crypto sleuth Adam Cochran suggested that Circle’s reserves could also be getting drained by a “community of particular person accounts” which can be working as “KYC mules” or money-laundering intermediaries, therefore the necessity to shut these accounts down.
Truthfully my private guess is that the TUSD/USDT rotation into USDC that has been draining their reserves has come from a community of client accounts – which is why it may well’t be pinned down.
KYC mules is not precisely a brand new idea – so would not shock me if that is the strategic…
— Adam Cochran (adamscochran.eth) (@adamscochran) October 31, 2023
Crypto dealer tmnxeq offered a distinct speculation, suggesting that the accounts could also be shut down as a part of a “cost-cutting/ restructuring train.” In its assertion, Circle referred to particular person accounts as “legacy client accounts,” which appears to suggest that they have been now not getting used as a lot as that they had beforehand.