Circle to phase out consumer accounts, but business and Mint will remain

Stablecoin issuer Circle will shut out shopper or particular person accounts on November 30, in accordance with emails acquired by Circle clients 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 out there.

On the morning of October 31, crypto person Evanss6 posted a picture to X (previously Twitter) of an e-mail that Circle clients allegedly acquired. The e-mail said that particular person accounts are being closed “as a part of Circle’s strategic evaluation.” The client was advised that “wiring and minting functionalities” would now not be supported and that the account could 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 assist for legacy shopper accounts and has notified particular person shoppers of this resolution. Account closures don’t apply to enterprise or institutional Circle Mint accounts.”

Associated: Circle launches ‘points-to-crypto’ program with Taiwan comfort retailer chain

On X, some crypto customers speculated in regards to the purpose for Circle’s resolution. Crypto sleuth Adam Cochran suggested that Circle’s reserves could also be getting drained by a “community of particular person accounts” which might be working as “KYC mules” or money-laundering intermediaries, therefore the necessity to shut these accounts down.

Truthfully my private wager is that the TUSD/USDT rotation into USDC that has been draining their reserves has come from a community of shopper 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 unique 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 shopper accounts,” which appears to indicate that they have been now not getting used as a lot as they’d beforehand.