Most Poloniex users from outside the United States 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.
We’re excited to announce that you ’re expanding our product offerings. https://t.co/AabVHWKyfu
– Circle (@circlepay) July 22, 2019
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 regulation 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.
“This will allow us to offer our overseas users new innovative products, including the addition of new assets and trading services, while remaining committed to our desire to work within the law and protect our customers,” the company said in a statement.
In the commentary, CoinDesk Circle CEO Jeremy Alleyr said that over 70% of Poloniex’s entire customer base accounted for overseas users.
“In particular, the markets of Europe and Asia are very important for us, ” he said, adding that the steamercoin USDC issued by the company is especially popular among Asian investors. “The insufficient regulatory framework significantly limits our proposals for individuals and businesses in the United States.”
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.
"This is a very large project for us to create a new international operational hub, and working with the government and financial regulator Bermuda took us a lot of time," he added.
Thank you @BermudaPremier and the @BermudaMonetary for your work and partnership in helping @circlepay launch our international crypto operations @Poloniex . Much innovation to come for our customers globally! pic.twitter.com/EZ0E7ibWeM
– Jeremy Allaire (@jerallaire) July 22, 2019
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.
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