Bittime - Circle, the largest USDC stablecoin issuer is planning to move their legal base from Ireland to the United States. This decision is believed to be Circle's preparatory step ahead of the Initial Public Offering (IPO).
Circle's move to the US
According to a report by The Block, Circle's parent company has recently submitted the necessary documents to the High Court of the Republic of Ireland.
This document was submitted for the purpose of transferring the legal basis or redomicile of the Circle company to the United States.
A Circle spokesperson confirmed the move, but did not provide further information regarding the reasons behind the change in legal basis.
However, Bloomberg media speculated that Circle's IPO plans were one of the main factors behind this decision.
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Circle's Preparation for IPO
In January 2024, Circle confidentially filed documents for an IPO with the United States Securities and Exchange Commission (SEC).
The submitted document is in the form of a draft Form S-1 registration statement. This step is a general procedure usually carried out by companies planning to list on the stock exchange.
By submitting documents confidentially, Circle has the freedom to finalize its IPO plans without being in the public eye.
Crypto players are also advised to continue to follow developments regarding Circle's IPO plans and their potential impact on the crypto market as a whole.
US Tax Rates Are Higher Than Ireland
Circle's decision to move its legal base to the US raises questions because Ireland is known as a country with a relatively low corporate tax rate. In contrast, the United States has a higher tax rate.
It has not been clearly explained why Circle chose to move their legal base to a country with a higher tax rate.
Also Read: Crypto Taxes in the United States and the United Kingdom: What's the Difference?
USDC: Second Largest Stablecoin
USDC is currently the second largest stablecoin in the world after USDT (Tether) with a market capitalization of $32.9 billion according to The Block data.
Stablecoins are a type of crypto asset whose exchange rate is pegged to another, more stable asset, such as the US dollar. USDC is pegged to the US dollar at a ratio of 1:1, meaning 1 USDC is worth the same as 1 US dollar.
Also Read How to Buy Crypto:
About Circle
In 2021, Circle actually planned to take the floor on the stock exchange through a merger with a special acquisition company (SPAC), Concord Acquisition Corp. However, the merger plan ultimately failed to materialize.
Meanwhile, Circle is supported by heavyweight investors in the financial sector, such as Goldman Sachs, Fidelity, and BlackRock.
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How to Buy Crypto with Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Temporary Suspension of USDC Printing on Noble by Circle
Circle Decides to Stop Printing USDC on TRON: What's the Impact on Stablecoins?
Getting to Know Circle and USDC: Building a Bridge between Traditional & Digital Financial Worlds
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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