The well-known cryptocurrency exchange and payment platform Circle has taken a rather surprising decision. It has decided to close its individual accounts. This move raises questions as to why Circle has taken such a step. Doubts are being raised about the management of its reserves. While some point to a desire to combat money laundering, others see it more as a simple restructuring exercise to optimize costs.

Scheduled to close on November 30

In an email sent to its users, Circle informs its customers that their individual accounts will be closed from November 30. After this date, it will no longer be possible to use the transfer and mining functionalities offered by the platform. A Circle representative confirmed this information. He specified that consumer accounts would be closed. Accounts for businesses and institutions would remain open.

Potentially depleted reserves?

Several hypotheses attempt to explain why Circle chose to make such a decision. Cryptocurrency researcher Adam Cochran suggests that Circle sees this as an opportunity to protect its reserves. According to him, the latter could be threatened by a network of accounts acting as mules or laundering intermediaries.

• The consumer accounts in question could therefore facilitate fraud and money laundering. Circle's reserve would therefore be at risk.
• These accounts enable transfers to be made without going through the usual Know Your Customer (KYC) checks.

Restructuring to optimize costs?

Another hypothesis, proposed by cryptocurrency trader tmnxeq, is that this decision is part of a wider restructuring drive. Circle is probably aiming to cut costs. With this in mind, the decision to close individual accounts could be linked to their low usage. Indeed, Circle itself has referred to these accounts as "legacy consumer accounts", suggesting that they are being used less and less by customers.

Businesses and Mint still supported

Finally, it is important to emphasize that this decision only concerns accounts for individuals. Circle has confirmed that professional and institutional accounts will continue to benefit from the platform's services.

• This means that businesses will still be able to make payments and receive funds using Circle.
• Similarly, Mint, which offers cryptocurrency mining and management services to its customers, will not be affected by these changes.

What are the alternatives?

As a result of this closure, individuals with accounts at Circle will have to consider other solutions for managing their cryptocurrencies. With the growing development of the virtual currency market, several alternatives are available:

• Use another exchange platform: The market is full of platforms for buying, selling and trading cryptocurrencies. Users can therefore turn to competitors such as Coinbase, Kraken, or Binance.
• Opt for specialized mobile apps: many apps allow you to check your balance, send and receive cryptocurrencies. These include Crypto.com, BitPay and Revolut.
• Adopt a physical wallet: Securing and managing your cryptocurrencies can also be done from physical devices called "hardware wallet", such as Ledger, Trezor or KeepKey. These solutions preserve private keys securely. They are an interesting option for limiting online risks.

Conclusion

The announced closure of individual Circle accounts does not mark a total abandonment on the part of the company. Circle continues to support businesses and institutions. For concerned individuals, it's time to investigate the various options available for managing their cryptocurrencies.