The majority of Poloniex users from outside the US will now be serviced by a new unit of this cryptocurrency exchange, which opens in Bermuda, the platform operator, Circle, said on Monday, July 22.
The company said the decision was made due to regulatory uncertainty in the United States. The work of already existing divisions of companies in the United States themselves, as well as in Ireland, the United Kingdom and Hong Kong, will continue.
Representatives of Circle note the advanced and extremely clear legislation in Bermuda, which opens up opportunities for the rapid development of innovations in the field of cryptocurrencies, and for business promotion.
It is based on the Digital Asset Business Act (DABA), adopted in 2018, which provides full control and supervision of financial services related to cryptocurrencies, including the issuance of digital assets, the purchase and sale of coins, exchange transactions, and custodial services.
According to the aforementioned company law to operate in Bermuda, it is necessary to obtain a license, and as Circle reports, today it has become the first large cryptocurrency company in the world to obtain such a Class F (full) license.
As a result, we’ll be able to deliver new innovations, including asset listings and trading services, to global customers while also staying true to our commitment to compliant, well-supervised operations and customer protections.
In the commentary, CoinDesk Circle CEO Jeremy Allaire said that over 70% of Poloniex’s entire customer base accounted for overseas users.
Europe and Asia are both pretty significant markets for us in particular. USDC stablecoin is particularly popular with institutional Asian investors. The lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S.
It was precisely the lack of clear regulation that forced Circle to dismiss about 30 employees in May, and as Jeremy Allair has now stated, the company plans to hire approximately the same number of new people over the next two years, who, however, will get other roles.
The project to establish a new international operations hub for our market, exchange and wallet services, was a major project. It took a long time working with the Bermuda government and the Bermuda Monetary Authority.
The head of Circle also said that a greater variety of assets will become available to international clients of Poloniex, and the exchange can expand the range of financial services that it cannot offer in the United States.
What kind of products and services in question, Allair did not specify, adding only that users can expect more opportunities for revenue. At the same time, he mentioned the existing stacking services for Cosmos and Stellar.