Regulatory uncertainty in the United States – Poloniex goes abroad
Home News Regulatory uncertainty in the United States – Poloniex goes abroad
Marcus Misiak –
Poloniex plans to shift the majority of its crypto-trade activities abroad, the parent company of Circle. The step is due to the regulatory in the USA, where there is a lack of a clear legal framework for crypto-currency related companies.
Circle CEO Jeremy Allaire said that 70% of Poloniex users are based in the USA, which has the exchange in a different Jurisdiction. Allaire also stated that Poloniex has already acquired his license for the Digital Assets Business Act for operation in Bermuda:
The Lack of regulatory framework limits the offer for private individuals and companies in the United States.
In may, the Delaware-based stock exchange introduced for reasons of regulatory uncertainty, their offer of nine coins for their customers in the United States: Ardor (ARDR), Bytecoin (BCN), Decred (DCR), game credits (GAME), Gas (GAS), Lisk (LSK), Nxt (NXT), Omni Layer (OMNI) and Augur (REP). The CEO also confirmed that the recent downsizing of the company is due approximately 30 employees in part to the lack of ambiguity of the US legislature.
Although the company will continue its activities in the United States, have drawn the attention of the co-founder of Circle, Sean Neville, and Jeremy Allaire, both in a recent blog post that the U.S. regulations Poloniex have prevented from, the US-based customers with a Wealth of features to offer. The step is to allow it to Poloniex, therefore, also to explore new financial services.
Unfortunately, we will not, due to the regulatory restrictions in the USA for the time being in the location, many of these new services for US persons to offer. However, we are committed to support the US clients in spite of the limitations as well as possible.
Neville and Allaire stated that they would continue to push for Changes in US policy. To said the reasons why you have for the location of the new subsidiary in Bermuda decided, the co-founder of the comprehensive regulatory framework of the island state are ideal, to encourage innovation.
The Bermuda shorts have created the Digital Assets Business Act of 2018 (“DABA”) an exceptionally well-designed and comprehensive regulatory framework. DABA offers a comprehensive framework for the regulation and supervision of the crypto-financial services.
Will say goodbye to more companies from the USA?
Shortly after President Donald Trump’s currencies his thoughts about Crypto in a Twitter Thread had expressed, in which he stated that he was “not a Fan” of Bitcoin, held the Minister of Finance of Steve Mnuchin, a press conference, he explained that the Lack of rules for the crypto markets represents a “national emergency”. In addition, Mnuchin also said that the government will begin to monitor crypto-currencies with so-called “very, very strong” rules.
In addition, the two Congress led to hearings over the past week about Facebook’s Libra extremely critical of the response of U.S. lawmakers, who seem determined to keep the project in its tracks. The hearings sparked an intense debate about Bitcoin and crypto-currencies. Now, it seems very likely that the new regulations could suffocate in the USA, the Innovation, and result in much more Blockchain and Crypto flee from the USA to the benefit of other countries.
Poloniex is one of the 100 largest crypto stock exchanges in the world – with a 24-hour trading volume of around 16 million US dollars. Poloniex is also listed in the Real 10 Volume Index of the Messari, which reflects the legitimate trading volumes leading industry participants.
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