Circle Moves Exchange Operations Offshore With New Bermuda Office

Circle is moving the majority of its Poloniex exchange operations offshore, citing a "lack of regulatory frameworks" in the U.S.

AccessTimeIconJul 22, 2019 at 4:20 p.m. UTC
Updated Sep 13, 2021 at 11:13 a.m. UTC

Due to mounting regulatory pressures in the United States, the crypto company Circle is moving the majority of its exchange operations offshore.

Circle announced Monday it received a full Digital Assets Business Act license in Bermuda for its crypto exchange Poloniex. Circle CEO Jeremy Allaire told CoinDesk that 70 percent of Poloniex users hail from beyond the U.S. and the new Bermuda-based entity will handle those accounts from now on. In May, the company geofenced some assets on Poloniex from U.S. customers.

“Europe and Asia are both pretty significant markets for us in particular,” he said, adding the USDC stablecoin is particularly popular with institutional Asian investors. “The lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S.”

Circle laid off around 30 employees earlier this year to “ensure our costs were in line with the market,” Allaire said. The cuts were attributed in part regulatory uncertainty in the U.S. Circle now says it plans to hire around the same number of people over the next 24 months, perhaps with different roles, to focus on global markets.

“The project to establish a new international operations hub for our market, exchange and wallet services, was a major project,” Allaire told CoinDesk, adding:

“It took a long time working with the Bermuda government and the Bermuda Monetary Authority.”

Looking forward, Allaire said more diverse assets will be available to global customers and that Poloniex might also expand to financial services, which the startup previously couldn’t offer in the U.S. He declined to specify what types of products and services those might entail. However, he did say users can expect to see more “yield-generating crypto accounts,” similar to the staking services already available for Cosmos and Stellar.

Image: Sean Neville speaks at Consensus 2018 (via CoinDesk archives)

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
The Crypto CEO Who Doesn't Want the Job

The Mask Network's Suji Yan is building and funding Web3, and hoping it decentralizes away his role. This Q&A is part of Future of Work Week.

CoinDesk - Unknown
2
CoinDesk - Unknown
Crypto News Roundup for July 1, 2022

With bitcoin appearing to stabilize while some crypto firms plead for help in response to the market turmoil, CoinDesk’s “Markets Daily” is back with the latest news roundup.

CoinDesk - Unknown
3
CoinDesk - Unknown
Voyager Digital Temporarily Suspends All Trading, Withdrawals and Deposits

Shares of the troubled digital broker were down more than 17% on Friday.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin termina un junio fatídico con su caída más grande de los últimos 11 años

Los mercados cripto experimentaron grandes pérdidas, con los inversores cada vez más preocupados por la alta inflación y los aumentos de las tasas de la Fed. Algunos analistas dicen que el precio de bitcoin podría bajar aún más.

CoinDesk - Unknown