Uncontrollable burden, Circle will transfer the exchange business overseas

As US congressmen and finance ministers consider strict regulation of cryptocurrencies, Circle has packed up and moved to Bermuda overseas.

Crypto

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.

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.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Opinion

US SEC Chairman's pessimistic tone: Cryptocurrency businesses often non-compliant, filled with opacity and risk

During a Q&A session at the 27th annual Financial Markets Conference held by the Federal Reserve Bank of Atlanta ...

Blockchain

Analysis: How does the value chain of the blockchain industry work?

Over the past few years, blockchain technology has evolved from a purely technology to a multi-billion dollar industr...

Blockchain

Get Ready for a Jaw-Dropping 90% Asset Return by Q2 2024 FTX Customers in for a Thrilling Ride with New Amended Proposal!

Exciting news for customers of defunct cryptocurrency exchanges FTX and FTX.US - an updated proposal offers hope of r...

Opinion

OPNX Development History Tokens soar by a hundredfold, becoming a leading bankruptcy concept?

OPNX is the most comprehensive and complete in terms of product conception in the debt trading field, but from the pe...

Blockchain

The new pattern of staking: exchanges enter the market to explore the boundary, the pledge amount of service providers is not proportional to the income provided

Analyst | Carol Editor | Bi Tongtong | PANews At this time last year, Staking was all the rage, and many players &quo...

Market

Encryption exchange "moving tide": US SEC "strongly pushed away", Middle East and Hong Kong "welcoming with a smile"

Due to the recent pressure from the SEC, several major exchanges around the world are preparing to flee, with the UAE...