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Circle’s Poloniex Exchange Opens Bermuda Subsidiary to Escape Regulatory Uncertainty in the US

  • Alex Dovbnya
    📰 News

    Poloniex will continue operating in the US, but Circle’s focus has shifted to its international customers


Circle’s Poloniex Exchange Opens Bermuda Subsidiary to Escape Regulatory Uncertainty in the US
Contents

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.

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An 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.

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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. 

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Crypto 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.

Cover image via u.today
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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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