Bermuda’s Crypto Ecosystem Grows, Regulation To Follow
4 months ago kakp2 Comments Off on Bermuda’s Crypto Ecosystem Grows, Regulation To Follow
Many decisions have had to be made regarding cryptos in the past few months as governments meet to discuss policy on whether they will accept or ban cryptos. Some bigger nations decided to stall when it comes to bringing regulation to tame the crypto market, but Bermuda is not one of them. This self-governing island nation is just completing its round of crypto regulation.
BMA seeks residents’ feedback
The BMA, Bermuda Monetary Authority, is currently in a process of gathering their residents’ opinions about the new law against money laundering that aims to organize the crypto industry.
The Royal Gazette’s report reports on the bill that the regulatory body wishes to bring, to include all blockchain and crypto activities within this nation. According to them, the Bermuda authorities want to not only develop a stable ecosystem that will enable crypto business, but to also attract other blockchain-related firms that seek a safe environment.
The regulation will require every aspect of the crypto business to be in check and all companies using or launching digital currencies to conduct a KYC. This will include blockchain firms, crypt exchanges, wallet services, and others.
Performing a diligent KYC is designed to prevent any and all forms of corruption and illegal activities involving cryptocurrencies so that scams can be exposed due to the removal of total anonymity.
For the greater good of all
The government of Bermuda announced that the new development’s purpose is not to damage the growth of cryptos in this nation. In fact, quite the opposite. They wish to create a functioning framework that will help bring stability, growth and security to the world of digital finances.
Wayne Caines, Minister of National Security for Bermuda hinted that there are many investors in cryptocurrencies that are looking to move their businesses to this country. A regulated ecosystem will make such actions possible, safe, and profitable for all parties involved. This point of view attracted attention from companies around the world, especially in the UK. Caines stated that over 20 companies want to meet with Bermuda’s representatives in London to discuss the matter further.
Bermuda’s new ICO Bill
As a part of their attempt to regulate the crypto industry in Bermuda, the nation’s authorities also wish to create a proper environment for the development of ICOs. Wayne Caines proposed a Bill that will treat ICOs as restricted activities that will have to request and get the Minister of Finance’s approval before starting their business. Bermuda believes that they could use this activity to their advantage and view ICOs as a tool with potential, especially when it comes to national development.
Mr. Caines himself stated that proper regulation regarding ICOs and cryptocurrencies, in general, can help attract more businesses and investors to Bermuda. This will lead directly to an increase in employment, new careers, and training opportunities for the country’s citizens.
Bermuda’s journey towards bringing this regulation started in November of last year, when the government formed a task force to explore the matter. They saw potential in the growth of the crypto trend and decided to act upon it.