Stablecoin issuer Circle has communicated to its customers that individual consumer accounts will be phased out. The closure is scheduled for November 30 and was disclosed in emails sent to Circle customers on October 31.
Business and Institutional Accounts Unaffected
Contrary to the closure of consumer accounts, Circle has assured that business and institutional accounts, specifically the “Mint” accounts, will continue to be available. This strategic move is also a part of Circle’s ongoing review to streamline its services.
On October 31, crypto user Evanss6 shared an email image on social media, further revealing the details of the account closure. According to the communication, individual accounts are being shut down as part of Circle’s strategic review. Notably, the email explicitly mentioned that functionalities like wiring and minting would not be supported. This will further lead to closure of the accounts on November 30.
Official Confirmation from Circle
Responding to inquiries, a Circle representative confirmed the closure of consumer accounts. However, he further emphasized the continued support for business and institutional Circle Mint accounts. The statement clarified,
“Circle is phasing out support for legacy consumer accounts and has notified individual consumers of this decision. Account closures do not apply to business or institutional Circle Mint accounts.”
Speculation on Reasons Behind the Move
Expectedly, the decision prompted speculation among crypto enthusiasts on various platforms. Crypto sleuth Adam Cochran proposed that the closure might be attributed to potential draining of Circle’s reserves by a network of individual accounts functioning as “KYC mules” or money-laundering intermediaries.
Also, another perspective offered by crypto trader tmnxeq suggested that the move could be part of a broader “cost-cutting/restructuring exercise.” Circle’s reference to individual accounts as “legacy consumer accounts” in its statement implies a shift in usage patterns, possibly contributing to the decision.