Circle announced today that it will be expanding its regulated services to Bermuda, using its new position in the island nation to service its global audience. Circle cited Bermuda’s pro-crypto regulatory environment as a primary motivation for expanding to the island nation. According to the announcement:
“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”). […]
“Bermuda’s pioneering approach is the kind of regulatory framework we’ve long advocated to unleash growth in the crypto industry. Moreover, we’ve witnessed first hand that the Bermuda government is prepared to iterate and evolve new regulatory rules alongside the pace of technical innovation in the crypto and blockchain field.”
Under a new “class F” license, Circle’s Bermuda subsidiary can offer all kinds of crypto services, including custody. Circle says it is the first major crypto company to approach the country since the DABA’s passage last year.
Circle owns Poloniex, a once-dominant altcoin exchange whose volume has largely been swallowed by the likes of Binance.
The post says that international users will now be able to access Poloniex through a new subsidiary called “Circle International Bermuda.”
The company claims that many of its upcoming features won’t be immediately available to U.S. customers due to regulations. Circle CEO Jeremy Allaire recently decried the muddy state of American crypto regulation as part of his company’s need to lay off some employees.
Speaking of hiring and firing, Circle says it will bump its Bermuda staff up to about 30 people.
Poloniex volumes have steadily fallen in recent years. In the 24 hour period at press time, the exchange had done just over $15 million, according to Coinmarketcap.com. Contrast that with Binance, which did over $1.1 billion.
Some believe the move is intended to save Poloniex from its declining market dominance, reportedly dropping from nearly 60% before Binance to not quite 1% of all volume today.
Last modified: June 23, 2020 2:44 PM UTC