Circle’s Poloniex Exchange Opens Bermuda Subsidiary to Escape Regulatory Uncertainty in the US
Crypto unicorn Circle has moved its Poloniex exchange to Bermuda after obtaining a Class F Digital Assets Business Act (DABA) license, the company’s blog post states.
The move coincided with the growing anti-crypto sentiment in the US.
Alex DovbnyaAn offshore subsidiary
Bermuda is considered to be one of the most crypto-friendly destinations, which explains why this country became a springboard for Circle’s international expansion.
Circle sacked 30 of its US employees back in May, but their Bermuda-based office will hire the same amount of people over the next two years to focus on global customers.
After becoming the first major cryptocurrency company to obtain a full DABA license in Bermuda, Circle is free to offer its international customers a wide range of services and work on innovative features.
Bermuda’s pioneering approach is the kind of regulatory framework we’ve long advocated to unleash growth in the crypto industry.
Regulatory constraints
Circle doesn’t have that much leeway in the US due to the regulatory uncertainty that was exacerbated by recent anti-crypto comments by top lawmakers and President Donald Trump himself.
The lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S, Allaire told Coindesk.
Despite the limitations, Circle will continue serving US customers.
Yuri MolchanCrypto behemoths leaving the US
As reported by U.Today, Allaire is a huge advocate of cryptocurrency regulations.
For instance, Circle became the very first company to receive a BitLicense back in 2015.
However, the US seems reluctant to act up and asserts its dominance in the industry, which explains the exodus of local crypto startups.
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