The homegrown cryptocurrency startup Circle just became the first company to move its exchange to Bermuda with a new subsidiary. Circle obtained the full Digital Assets Business Act (DABA) license permitting the company to operate payment services, custody, exchange, trading and other financial services that use digital assets.
The DABA license, a tenet of Bermuda's friendly crypto policies, will allow Circle to offer its global customer base a wider range of digital products like trading services and asset listings. The clincher of the policy allows a "digital asset" to be defined by its function: an investment contract, a commodity, a utility, a service, or a payment currency.
This is not without oversight. In a blog post, the company explained that DABA's comprehensive framework allows for innovation without compromising on oversight. "DABA protects customers with stringent requirements for managing enterprise, cybersecurity and custody risk," the company wrote. "The framework also actively guards against international criminal activity with one of the strongest regimes in the world for anti-money laundering and combating the financing of terrorism in ways that are compliant with Financial Action Task Force standards."
The immediate result of this move means that Circle's Bermuda subsidiary can appeal to and invite a global user base to trade on Poloniex, the cryptocurrency exchange Circle acquired in February last year.
Bermuda is part of a legion of countries, including Malta, Liechtenstein and Gibraltar that want to be welcoming and hospitable to crypto businesses. The island country, which has a strong banking and financial services industry, unveiled a crypto-friendly bank for companies to avail of basic banking services.
Jeremy Allaire-led Circle, which recently laid off 30 staff members and shuttered its payment app, Circle Pay, is set to hire 25 to 30 people during the next two years in Bermuda. These jobs will be in general management, risk, compliance, finance, trading, and customer operations.
