Circle relocated the Poloniex exchange to Bermuda after received its digital asset license from the government.
The exchange’s move is due to clashes with obstructive laws and regulations the US has imposed on the cryptocurrency sector.
Poloniex’s U.S. customers will reportedly still not have access to particular tokens offered on the platform. Crypto traders that are not based in the US are able to trade with all the supported cryptos.
Circle received its “Class F” license under Bermuda’s Digital Assets Business Act of 2018 (DABA).
By having this license, the company is allowed to move Poloniex to Bermuda and provide to non-U.S. customers all their cryptocurrency investment options.
DABA covers an entire suite of regulations which apply to different aspects of the crypto industry such as initial coin offerings (ICOs), trading, and wallet/custody services. Its framework also features safeguards which prevent money laundering and terrorist financing consistent with regulations proposed by the Financial Action Task Force (FATF).
Circle is the first company in the crypto sphere to get this license.
The company’s reallocation to Bermuda led to the creation of a new branch called Circle International Bermuda which will enable non-U.S. customers of Poloniex to make crypto trades.
The higher-ups at Circle have stated that these well-defined regulatory requirements prove that their move is not at all like a relocation to an offshore legal haven.
Regarding the exchange’s relocation, Gus Coldbella, the chief legal officer at Circle, made the following comment:
“We’ve always been advocates for forward looking regulatory clarity on digital assets. That being said, we’ve been searching the world for jurisdictions that met our criteria, but that were also deeply focused on regulatory compliance. We evaluated a number of places to base our international operations in and Bermuda was a perfect fit. Under the DABA license, Circle will be able to operate a suite of regulated crypto financial services for our international customer base, including expanded digital asset product offerings.”
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