Circle Internet Financial, the company behind USD Coin, one of the world's top stablecoins, has announced its decision to shift its legal headquarters from Ireland to the United States. This move is in response to the tightening regulations on cryptocurrencies in the U.S.

A spokesperson from Circle confirmed to Bloomberg on May 14 that the company has started the process of relocating its legal base, although they did not disclose specific reasons for this decision. This relocation aligns with Circle's plans to become a publicly traded company, evident from their confidential submission of an IPO plan earlier in January.

Legal Ramifications

The transfer from Ireland, known for its lower corporate taxes, to the U.S. is expected to raise Circle's tax obligations. This change is part of a broader strategy in response to global tax reforms introduced by the Organization for Economic Cooperation and Development (OECD).

Since October 2021, the OECD's Global Anti-Base Erosion Rules have mandated a minimum 15% tax on the profits of multinational enterprises (MNEs) worldwide. Concurrently, Tether, the leading stablecoin issuer, has been actively involved in regulatory compliance efforts.

Paolo Ardoino, the CEO of Tether, disclosed that the company has safeguarded more than $1.3 billion in assets against various risks. This proactive stance reflects the evolving landscape of cryptocurrency regulations and the measures companies are taking to navigate these challenges effectively.