Circle Discontinues Support for USDC on TRON Blockchain
Stablecoin issuer Circle has announced that it will no longer support the USDC stablecoin on the TRON blockchain. This decision is based on concerns related to risk management. The discontinuation of USDC support on TRON will take place gradually until February 2025. During this period, normal USDC transfer and redemption activities on TRON will continue uninterrupted. Circle emphasized that this decision was made after a comprehensive evaluation involving various departments within the company. Circle Mint customers will have the option to transfer their USDC to other compatible blockchains or redeem them for fiat currency through Circle until February 2025.
Transfer USDC to Other Blockchains until Feb. 2025, Circle Says
In addition to discontinuing support for USDC on TRON, Circle will allow Circle Mint customers to transfer their USDC to alternative blockchains until February 2025. This gives users the flexibility to choose other compatible blockchains or redeem their USDC directly for fiat currency through Circle. It is important to note that the value of USDC remains pegged 1:1 to the US dollar, ensuring stability and reliability for users.
Circle and TRON Accused of Illicit Funding
Circle’s decision comes amidst allegations that TRON has been involved in money laundering activities. The non-profit organization Campaign for Accountability raised concerns about potential illicit activity within TRON’s ecosystem, claiming that Circle facilitated funding for terrorist organizations through transfers on TRON. However, Circle has refuted these allegations, stating that it did not engage in any illegal financing activities. Additionally, a Reuters report highlighted TRON as a preferred platform for terrorist groups to transfer cryptocurrency.
Hot Take: Circle’s Risk Management Decision
By discontinuing support for USDC on the TRON blockchain, Circle is taking a proactive approach to risk management. This decision reflects the company’s commitment to maintaining a secure and compliant ecosystem for its stablecoin. While it may impact TRON users who rely on USDC, Circle is providing alternative options for transferring or redeeming USDC. This move also addresses concerns about potential illicit activity within TRON’s network. Circle’s decision sets a precedent for other stablecoin issuers to prioritize risk management and compliance in their operations.
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