One of the leading crypto payments firm Circle to release a new subsidiary in Bermuda to provides services to users living outside of the United States. The firm has decided to shift its exchange operations because of constant regulatory issues in the US.
In a blog post on July 22, Circle declared that it had obtained a full license to provide crypto-related services under the Digital Assets Business Act of 2018, a leading local regulatory framework for cryptos which was released on July 2018.
CEO of Circle, Jeremy Allaire stated that 70 percent of Poloniex users are located outside the US, and the new Bermuda based entity will look after all those accounts. In May, the firm geofenced some assets on Poloniex from U.S. customers.
“Europe and Asia are both pretty significant markets for us in particular,” he stated along with USDC stablecoin is especially popular with institutional Asian investors. “The lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S.”
Along with the expansion to Bermuda, Circle plans to provide an array of crypto-related services along with advanced trading products and new crypto asset listings, the firm stated in the announcement. But, most of the services will not be available in the United States, Circle highlighted, referring to the U.S. regulatory concerns.
Circle dismissed about 30 employees this year to make sure that their costs remain in line with the market. The cuts were assigned in part regulatory uncertainty in the U.S. Circle. But now the firm has plans to hire the same number of people again in the next two years, possibly for different roles to focus on global markets.
Allaire stated, “The project to establish a new international operations hub for our market, exchange and wallet services, was a major project.”
He added, “It took a long time working with the Bermuda government and the Bermuda Monetary Authority.”
Circle said that it is committed to serving American customers and will proceed to advocate for regulatory challenges to ensure that the "U.S. economy is not left behind by opportunities created from digital asset and crypto innovation."
Moreover, Circle welcomed Bermuda's approach to crypto, ensuring that the firm has witnessed first that the Bermuda Government is ready to introduce new regulation help in the technical innovation in crypto and blockchain industries.
Circle also stated that it will continue providing its services in the United Kingdom, Ireland, Hong Kong, along with the US.