Crypto trading platform provider Circle has opted to launch a new business and exchange operations in Bermuda, but regulatory restrictions will limit access for clients in the US.
The firm said that it has received a Class F (Full) Digital Assets Business Act (DABA) license in the country, which covers operation of its payments services, custody, exchange, trading and other financial services for digital assets.
Non-US customers will now use the Poloniex cryptocurrency exchange through Circle’s Bermuda entity, but due to ongoing regulatory restraints, clients in the US will not be able to access its most of its services.
“Because of US regulatory limitations, we will not be able to offer many of these new services to US persons for now,” wrote Circle co-founders, Sean Neville and Jeremy Allaire, in a recent blog post. “However, we’re committed to serving US customers as best we can despite the constraints. We will also continue to advocate for changes to US policy and regulations so the US economy is not left behind by opportunities created from digital asset and crypto innovation.”
Circle added that governments globally have failed to keep pace with the adoption of cryptocurrencies and the rise of the digital asset industry. However in Bermuda, DABA was introduced in 2018 as a regulatory framework for digital asset firms, covering oversight of crypto financial services such as issuance, sale and redemption, exchange operations and custodial services.
“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,” Neville and Allaire concluded.