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The Securities and Exchange Commission of the United States (SEC) informed Circle that it will not apply disciplinary measures to Poloniex for prior activities as Circle claims to obtain licenses for Polonies.

Circle consulted with the SEC on the purchase of Poloniex and announced its intention to create a new legal entity, register it with the SEC and the Financial Institutions Authority (FINRA) as a broker/dealer and obtain a license as an electronic trading platform (ATS). The American regulator expressed support for this approach and promised not to apply disciplinary measures to Poloniex for “prior activity,” says the internal presentation of Circle, whose one page leaked to the media.

 

"The SEC was very favorable on this approach and indicated that they would not pursue any enforcement action for prior activity. They said we are the first and only company in the space to approach them, and were very progressive on working closely with us."

This week Circle and Poloniex officially announced a deal; as a result the crypto-exchange will be included in the multi-profile cryptocurrency company Circle. The amount of the deal was not disclosed, but according to sources in the market, the purchase cost Circle $400 million.

Poloniex will continue to work as a separate unit within the company, specifies the presentation of Circle. It also says that the staff of the crypto-exchange will be increased by 80-100 employees.