Bermuda Is Working on Crypto Regulations That Will Foster the Digital Currency Ecosystem

Just when the regulatory bodies from the globe are seen locking horns with cryptocurrencies and its related activities, Bermuda has got some very interesting plans for its people. The country’s regulatory watchdog - The Bermuda Monetary Authority (BMA) - is currently seeking the opinion of its residents and is putting some finishing touches on its crypto regulatory framework.

The proposed bill looks forward to encouraging the development and growth of Bermuda’s nascent cryptocurrency industry. According to The Royal Gazette, BMA is making sure that the bill encompasses a huge spectrum of blockchain or crypto-related activities making sure that they can thrive seamlessly in the future.

The newly proposed regulations ask all the cryptocurrency exchanges, fintech firms and others involved in crypto-related activities to properly get done the know-your-customer (KYC) operations at their end. The KYC rules are basically there to combat all the illegal activities done using digital currencies.

Wayne Caines, the minister of national security called these regulations a “landmark legislation for Bermuda.” The minister further added: “The emergence of new financial products and services created through the use of technology has opened new and exciting opportunities for entrepreneurs and businesses.”

Last week on Thursday, April 12, Mr. Caines presented Bermuda’s finch strategy to a group of 150 key business partners of Bermuda. In a statement, Mr. Caines said that the government “recognize[s] that there’s significant interest in virtual currencies and blockchain technology,” emphasizing Bermuda’s desire to “become a global leader in the fintech space.”

The proposed bill also talks about a proper licensing scheme to approve credible blockchain and crypto-related startups to allow them to function under the ambit of law. In what may come as an absolute surprise, the government authorities of Bermuda are also working to lure more ICO organizers to the nation. The proposed bill now seeks to treat ICOs as a “restricted business activity that requires approval from the Minister of Finance.”

The government says that although many nations have snubbed-off ICOs by implementing draconian rules against them, Bermuda considers this fundraising activity as a potential tool for national development.

Mr. Caines said: “Embracing this new world with responsible regulation could lead to the attraction of new companies and capital investment to Bermuda; additional government revenues; new career, employment and training opportunities for Bermudians, and the laying of a foundation for a prosperous future for our next generation of Bermudians.” 

If things go as per the plans, Bermuda could become the next major hub of all crypto-related activities in the country.