The US uncertain regulatory environment may have forced Circle to move its exchange operations in Bermuda. Circle has obtained a digital asset license to operate in the less restrictive crypto country.
In terms of the strategic move, this is what the Circle team said:
While many governments around the world have not kept pace with the regulatory requirements driven by rapid innovation in digital asset businesses and crypto, Bermuda has leapt forward with an exceptionally well designed and comprehensive regulatory framework: the Digital Assets Business Act of 2018 (“DABA”).
Non-US cryptocurrency traders will be able to unrestricted access to Poloniex. The strategic move comes after Poloniex’ efforts to be compliant with the US regulatory environment, which is constantly fluctuating and restrictive.
The company behind Poloniex, Circle, is a cryptocurrency and fintech company that seems to be focusing more and more of digital currencies and international expansion. Thanks to the digital asset license that Poloniex has obtained in Bermuda, Circle will be able to offer to its traders services such as custody, trading, payment, and many more. According to Forbes magazine, Circle has managed to obtain a “Class F” license under DABA.
The new entity in Bermuda will be called Circle International Bermuda. What is impressive, however, is that Circle is the very first company to receive such a license. On the other hand, Bermuda is truly moving to be an international cryptocurrency heaven, especially with the clear and robust DABA framework.
The United States may be losing on digital transformation more quickly that the country realizes, as exchanges and digital asset companies are looking for other destinations for their operations with clear frameworks and better regulatory environment.
More about Poloniex and Circle can be found here: