Circle, one of the most influential companies in the cryptocurrency market, decided to launch a new subsidiary in Bermuda. The main goal behind this move is to attract new customers from other countries rather than the United States. Circle is the owner of the cryptocurrency exchange Poloniex.
Circle Wants To Expand In Bermuda
According to a blog post released in July 22nd by Sean Neville and Jeremy Allaire, the co-founders of Circle, they are planning to serve non-US Poloniex customers with their new Bermuda operations. The intention is to offer many new digital asset services from Bermuda over time.
This is not the first time that the company operates in other countries outside the United States. For example, the firm opened offices in Ireland, the United Kingdom and also Hong Kong. The decision to move to Bermuda is due to the fact that the country has established better regulations for virtual currencies in the market than other jurisdictions.
The blog post reads as follows:
“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”).”
The DABA provides a more comprehensive framework for the regulation and oversight of crypto financial services. This includes the issuance of virtual currencies, sales and also redemption, exchange operations and custodial services.
The press release explains that Circle is the first major crypto finance company that receives a Class F DABA license covering the operations of many different services. That means that payments, custody, exchange, trading and other financial solutions that the firm provides related to virtual currencies are fully licensed in the country.
This is very positive for Circle that is trying to offer new innovations and asset listings and trading services. The crypto market is larger than the United States, many individuals and investors passionate about Bitcoin and other digital assets are not located in the U.S. which is why the platform decided to move to Bermuda.
Binance, one of the largest cryptocurrency exchanges in the market, has also decided to start operating in the United States with a new subsidiary that will include fewer Initial Coin Offering (ICO) tokens. The intention is to attract new U.S. investors.
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