As US congressmen and finance ministers consider strict regulation of cryptocurrencies, Circle has packed up and moved to Bermuda overseas.
Circle avoids regulatory pressure
As regulatory pressures on cryptocurrency companies continue to strengthen, Circle announced that it will transfer almost all its trading operations overseas. Earlier today, Circle announced the news after obtaining a commercial license for digital assets, which allowed it to do business in Bermuda.
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Circle CEO Jeremy Allaire said that about 70% of Poloniex users live outside the United States. Circle’s office in Bermuda will now be responsible for the management of these accounts.
“For us, Europe and Asia are both important markets, and the USDC is particularly popular with Asian institutional investors.”
Unclear regulation inhibits development
With the hearing of the Facebook Libra cryptocurrency last week that the US Congress will push Bitcoin back into the spotlight, there may be more cryptocurrency companies emulating Facebook. US Treasury Secretary Steve Mnuchin's point of view shows that the industry will face stricter regulation to prevent Bitcoin from becoming a Swiss bank account.
Executives at many cryptocurrency companies have repeatedly stated that they are disappointed with the lack of a clear regulatory framework, which will allow other countries to gain the upper hand in blockchain and cryptocurrency infrastructure development. Allaire said, "The lack of a regulatory framework severely limits the services that the United States provides to individuals and businesses."
Today, Circle is beyond the scope of US regulation to a certain extent. The company plans to hire 30 employees in the next 24 months, with a focus on the global market.
“The project will create a new international center for our markets, exchanges and wallet services, and we have spent a long time working with the Bermuda Government and the Bermuda Monetary Authority.”
In the future, Circle plans to offer a more diverse portfolio of assets, while Poloniex can expand its business and provide financial services. Although Allaire did not elaborate on the exact nature of these services, he revealed that more "cryptocurrency accounts that generate revenue" could be provided.