Cryptoassets and the blockchain continue to take the world by storm. The Government of Bermuda will soon be amending their Banking act, with the special aim of stretching a helping hand towards local blockchains and startups.
The fresh resolution proposes to give rise to a new class of banks that will cater to the needs of local Fintech and Blockchain companies, say Finextra sources. Recently, a Digital Asset Business Act and an Initial Coin Offering bill have also been passed in Bermuda to make the country economy more friendly to virtual currencies.
Earlier, the Local Banks of Bermuda did not have a very co-operative attitude towards the aforementioned companies. Possible reasons for the refusal of banking services include risk-averseness and regulations of obstructive nature. Their reluctance was seen as a threat to the economic growth, and hence Bermuda premier and Minister of Finance David Burt introduced the bill to the Parliament. He mentioned that “In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore it must be resolved.”
What’s Done Yet
Two previous legislation has been a positive development. The Initial Coin Offering bill which requires the ICOs to be approved by the finance minister has been tabled as of now. But the Virtual Currency Business Act puts a strong word on behalf of the smooth regulation and progress of virtual currency in the country. It addresses exchanges, wallets, services, as well as market manipulation and security issues.
Bermuda plans to emerge as a global hub of virtual currency and exchanges. There already exists a Blockchain Taskforce, which ensures legal and technical support to the Blockchain ecosystem. They are also about to introduce a digital ID scheme, which will allow the virtual assortment of data and its control to residents and businesses alike. This, in return, will help the financial services move more efficiently and effectively.