Cryptocurrency startup Circle plans to obtain a Federal license for banking operations in the United States. Also, the creators of the project intend to register as a broker and a trading platform.
Circle, a startup that offers a cryptocurrency wallet and investment platform, while OTC trading, that is a direct off-exchange trade. The project was launched in 2013 and attracted investment from Goldman Sachs, one of the largest investment banks in the world. Now the Circle is going to ensure that their trade of digital tokens was interpreted as a securities exchange. This will help them to avoid difficulties with the registration as the cryptocurrency company in 50 States.
“You can conduct some negotiation. But to spend 50 negotiations — this is very difficult,” — explained the Director for supervision of compliance Robert bench (Robert Bench).
Before submitting the application for obtaining of banking license, Circle plans to obtain permission to register in the Commission on securities and exchange Commission (SEC).
“Keep a reserve in the Federal reserve system, … seek directly to address issues with other banks around the world through this network is to enhance the effectiveness of our services and reduce costs”, — said the head of Circle Jeremy Allaire (Jeremy Allaire).
He also added that their company may become a “Guinea pig” for regulators in their investigations of the industry. Should they be interested, as even the giants of wall street are seriously thinking about cryptocurrencies. And for the Circle such an ambitious step it is consistent with their purpose of being the supplier to a large number of digital assets in the market.
“I think it would be fair to say that digital assets, not just digital currency, but a wider range of assets is an area that has grown strongly in recent time. However, it is still inaccessible for the majority of investors”, — says Aller.
We will remind that in February, the Circle acquired the us cryptocurrency exchange Poloniex. According to sources, the deal cost the startup $400 million In may, the company completed an investment round of the series E, when it raised $110 million from venture capital firms Accel, Blockchain, Capital, etc.