Bermuda Prepares Regulation for Blossoming Cryptocurrency Ecosystem
Originally published on: Bermuda Prepares Regulation for Blossoming Cryptocurrency Ecosystem
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April 16, 2018
At a time when the ‘big nations’ are busy dragging their feet concerning the favorable regulation of the virtual currency industry, Bermuda, the self-governing British overseas territory island nation is putting the finishing touches to its crypto regulation plans.
Bermuda’s Regulatory Body Seeks Feedback
The Bermuda Monetary Authority (BMA) is seeking the opinion of residents concerning the anti-money laundering law that is aimed at organizing its local cryptocurrency industry.
According to The Royal Gazette, the regulatory body declared its determined to make sure the bill encompasses a vast array of blockchain-based virtual currency related activities. In other words, the authorities are looking to develop a kind of ecosystem that could attract and enable crypto- and blockchain-related businesses to thrive seamlessly.
The proposed regulation requires all digital currency exchanges, blockchain-based fintech firms, wallet services and all firms whose primary trade is to facilitate token generation events and initial coin offerings, conduct proper know-your-customer operations (KYC).
In essence, the body wants to use the KYC rule to combat to some extent, all forms of illegal activities in the crypto industry by stripping bad actors of their previous anonymity.
For the Good of All
The Bermudian government officials were quick to add that this latest development is not aimed at stifling the growth of the nascent virtual currency industry in the nations, rather its focused at creating a robust and comprehensive framework that would ensure stability, security and continuous growth of the blockchain finance world.
As mentioned by The Royal Gazette, Bermuda’s Minister of National Security, Wayne Caines hinted that quite many crypto investors are looking to pitch their tents in the country and it’s only healthy to regulate the ecosystem to ensure everything works in a frictionless manner. In his words:
“We can’t keep up with the amount of people who want to come to Bermuda. We’re going to London at the weekend, and we have 20 companies lined up to meet us. It’s actually phenomenal.”
Notably, the proposal also seeks to implement a scheme that would offer a form license to credible blockchain and cryptocurrency startups in a bid to make them function under the ambits of the law.
Bermuda ICO Bill
In a related development, authorities in the nation are also looking to create a favorable environment that could lure more ICO organizers to the nation. Minister of National Security, Wayne Caines, proposed a Bill that seeks to treat ICOs as a “restricted business activity that requires approval from the Minister of Finance.”
Unlike other nations that have a draconian stance toward ICOs, Bermuda firmly believes that the crypto-based fundraising activity could be a potent tool for national development if well regulated. In his words:
“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.”
It is worth noting that Bermuda started its journey towards regulating its digital currencies industry a long time ago. In November 2017, the government set up a task force to look into the matter.
“Bermuda is committed to building upon its position as an innovative international business center, and is considering a complementary regulatory framework covering the promotion and sale of utility tokens, aligned with the DLT framework,” said Premier Burt in November 2017.
If all goes as planned and the country entirely regulates its cryptocurrency space, Bermuda would become another hotspot for ICO organizers, fintech firms, and all crypto-related businesses. This favorable scenario could greatly improve the economy of the Caribbean nation.