Crypto Startup Circle Receives Bermuda Business License

News, Regulation | July 23, 2019 By:

Crypto finance firm Circle has expanded its international digital asset offerings with the launch of a new subsidiary in Bermuda.

Founded in 2013, Circle is a peer-to-peer payments technology company. The company is one of the most well-funded blockchain startups, with investors including Goldman Sachs Group and Baidu. It offers four products: Circle Invest, which allows users to easily invest in crypto; Circle Pay, which allows users to send money like a text; Circle Trade, the company’s OTC trading desk; and Poloniex, which allows users to buy and sell on its active crypto exchanges.

Circle announced in a blog post that it is the first major crypto finance company to receive a Class F Digital Assets Business Act of 2018 (DABA) license, a Bermuda regulatory framework that covers the operation of payment services, custody, exchange, trading and other financial services that use digital assets.

The DABA license will reportedly enable Circle to deliver new innovations to global customers while also staying true to their commitment to compliant, well-supervised operations and customer protections.

“We plan to serve non-US Poloniex customers with our new Bermuda operations, and we expect to offer many new digital asset services from Bermuda over time,” Circle said. “We will also continue our existing operations in the US, Ireland, the UK, and Hong Kong.”

The Bermuda expansion will allow non-US customers to use Poloniex through the company’s new Circle International Bermuda entity. According to the firm, this transition will open the door for non-US customers to access an exciting roadmap of new capabilities they plan to release in the coming months, including new crypto asset listings, advanced trading products, and other innovations. The company, however, noted that they would not be able to offer many of these new services to US persons at the moment due to regulatory restrictions.

“We’re excited to be opening a new office in Bermuda,” the company said. “We plan to grow our Bermuda staff to more than 30 people during the next two years, with roles including general management, risk, compliance, finance, trading, and customer operations.”