What's the good news?
We’re expanding our global offerings with the launch and regulatory licensing of a new subsidiary in Bermuda. 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. We will also continue our existing operations in the US, Ireland, the UK, and Hong Kong.
Circle is the first major crypto finance company to receive a Class F (“Full”) DABA license that covers the operation of payment services, custody, exchange, trading and other financial services that use digital assets. As a result, we’ll be able to deliver new innovations, including asset listings and trading services, to global customers while also staying true to our commitment to compliant, well-supervised operations and customer protections.
Why is Poloniex / Circle taking this step?
While many governments around the world have not kept pace with the regulatory requirements driven by rapid innovation in digital asset businesses and crypto, Bermuda has leapt forward with an exceptionally well designed and comprehensive regulatory framework: the Digital Assets Business Act of 2018 (“DABA”). DABA provides a comprehensive framework for the regulation and oversight of crypto financial services including digital asset issuance, sale and redemption, exchange operations, and custodial services.
Does this mean Poloniex will no longer be supporting US customers?
We will continue to support our US customers with innovative and interesting products and services.
Does this mean Poloniex will be gradually shifting away from serving US customers?
Absolutely not. However, because of regulatory uncertainty in the US, many new offerings will not be available to US persons for now. We are committed to serving US customers as best we can despite the constraints. We will also continue to advocate for better US policy and regulations so the US economy is not left behind by opportunities created from digital asset and crypto innovation.
When is this effective?
We will be transitioning our non-US customer base over the next few weeks. We will be distributing a new User Agreement to our customers with the effective date.
What are the benefits?
While the Bermuda regulatory framework enables technical and business innovation, it simultaneously enforces high regulatory and supervisory standards. DABA protects customers with stringent requirements for managing enterprise, cybersecurity and custody risks. The framework also actively guards against international criminal activity with one of the strongest regimes in the world for anti-money laundering (AML) and combating the financing of terrorism (CFT) in ways that are compliant with Financial Action Task Force (FATF) standards.
What actions do I as a customer have to take?
As a US customer, there is no action to take.
As a non-US customer, we will be transitioning you to our new Circle International Bermuda Entity and you will receive an email in the coming weeks with further details and a link to our updated User Agreement.
Will there be any changes to my account?
As a US customer, there will be no changes to your account.
As a non-US customer, there will be no immediate changes to your account, however, this new license will enable our business to offer new products and features in the coming weeks and months that will allow you to engage in different kinds of trading.
Will Poloniex’s support team be moving to Bermuda?
We will continue to operate, and grow, our Support Team globally including expanding beyond 3 countries and 4 time zones. The addition of Bermuda will enable our Support Team to provide additional coverage, on top of our existing support. As a result, our customers will experience faster responses to their inquiries and should experience no gaps in coverage.
Will any of the addresses I use to get funds into my account (via wires and/or debit and credit cards) change?
There will be no changes to your wallet addresses to send or receive funds.
Does this change the tax status of my assets?
There are no changes to your tax status as a result of these updates. Every customer should continue to abide by their local laws regarding reporting assets for tax purposes.