Circle and Poloniex Move to Bermuda, Cites Unfavourable Regulatory Conditions in the US
Poloniex exchange, run and managed by Circle, has received a full Digital Assets Business Act license in Bermuda. Circle is one of many that have had relocated out of the United States due to regulatory issues.
Another crypto company leaving the U.S.
The United States regulatory climate has forced quite a number of crypto exchanges to relocate out of the country to more crypto receptive places. Bermuda is currently a safe haven for cryptocurrency companies looking for a favorable and stable environment. The country recently created a comprehensive regulatory structure for digital assets.
Global blockchain finance giant, Circle, in a blog post on July 22, announced that it has received a “Class F” license under their Digital Assets Business Act of 2018 (DABA). The license will make it possible for Circle and Poloniex to provide crypto-related payment services, custody, trading, and several other crypto financial services. CEO of Circle Jeremy Allaire told newsmen that over 70 percent of Poloniex users are Non-US traders, the Bermuda arm of the company will be in charge of those accounts from now on. Operations in the United States, Ireland, the U.K., and Hong Kong will continue normally.
In May, Allaire fired at least 30 of his employees citing “increased regulatory pressure” as the reason for his actions. The company however has plans to hire about 30 new employees for its Bermuda arm in the next 24 months. Allaire stated that “Europe and Asia are both pretty significant markets for us in particular.” He added that, the USDC stablecoin is quite popular in the Asian markets and that the “The lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S.”
A Bermudian government official working alongside Circle, Premier David Burt, told Forbes that the country’s relationship with the company will definitely boost growth and introduce new innovations to the region.
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