Poloniex transfers its foreign customers to Bermuda-based subsidiary
|- The company explains the decision by regulatory uncertainty in the USA.
- The new subsidiary will offer an extended range of tools and services for non-US customers.
The majority of non-American Poloniex users will now be serviced by a new Bermuda subsidiary of the cryptocurrency exchange, the platform operator, Circle, announced on Monday, July 22.
"We're excited to announce that Circle and @Poloniex are expanding our product offerings for a global client base through new Bermuda licensure and operations," the company wrote on its Twitter.
The company explained that the decision was prompted by regulatory uncertainty in the USA.
Circle emphasized that Bermuda has advanced and extremely clear legislation, which helps to unleash opportunities for the rapid development of innovations in the blockchain and cryptocurrency industry.
The country adopted the Digital Asset Business Act (DABA) in 2018. This law creates a regulatory framework for the 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 law, companies have to obtain a license issued by Bermuda" regulator. Meanwhile, Circle reports that it has become the first large cryptocurrency company to obtain such a Class F (full) license.
Over 70% of Poloniex users come from outside the USA, according to Circle" CEO Jeremy Allaire.
The head of Circle also said that international clients of Poloniex would have access to a greater variety of trading tools and services.
"In the near term, non-US customers will use Poloniex through our new Circle International Bermuda entity. This transition will open the door for non-US customers to access an exciting roadmap of new capabilities we plan to release in the coming months including new crypto asset listings, advanced trading products, and other innovations," he said.
Allaire also added that users would have more earning opportunities.
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