Circle, the Bitcoin startup based in the US that allows one of the simplest routes between converting government-backed currency and Bitcoin will now expand to the UK. Circle, which started off as a platform in the US that allows for the buying and selling of Bitcoin with no fees is now a full-fledged digital currency and exchange application that allows users to send money to one another through their app, attach messages, and convert from one currency to another.

Circle has been granted an e-money license, by the Financial Conduct Authority in the UK to become an electronic money institution (EMI), in a first for a Bitcoin startup. All digital currency companies that operate legally in the UK are required to get this license (it is exempt for financial institutions like banks and credit unions). With the new partnership with Barclays, a British bank operating in over 50 countries, Circle has significantly expanded its global footprint and will be ready for a launch in the EU sometime in the future.

Circle has raised $76 million from a number of investors, including banks such as Goldman Sachs and well-known venture capital firms like Andreessen Horowitz. The partnership with Barclays means the British bank will be the banking partner for Circle and allow it to transfer money in and out of any British accounts in various banks, while also depositing British pounds on Circle’s behalf.

UK’s Fintech Push

The British government has been actively pushing for Britain to become a leading financial technology (fintech) hub in the world, especially the capital city London. It has significantly eased burdensome regulations on startups to pave the way for new entrants that will compete with the legacy guard. London enjoys a favorable time-zone advantage over New York with respect to trading in the Americas and Asia, and has historically been a major financial hub. However, its dominance is being challenged by several upstarts in Silicon Valley and New York.

The latest announcement by Circle takes London one step further in helping startups, especially the ones in fintech establish a business base in the city. The push is even more important in the face of recent crisis with “Brexit” where a referendum will be held to determine if the UK should stay in the EU or not. Many industry experts fear that a referendum to leave the EU will mean a decline of London as a global financial hub and will isolate the city from the rest of the industry, giving an opening for other EU cities. Already, the British Pound has declined over 4% against the US Dollar and over 12% against Japanese Yen this year.

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