Bermuda is now emerging as a hot destination for cryptocurrency and blockchain businesses. Due to its ground-breaking policy initiatives, the North American British Island territory is attracting big players from the cryptocurrency industry.
Bermuda Taking Pro-Crypto and Pro-Blockchain Initiatives
In 2017, Bermuda launched a task-force to tackle regulatory issues relating to cryptocurrencies and blockchain. The task force’s mission is to “develop Bermuda as a destination for Utility Tokens, Tokenized Securities, Cryptocurrencies, and Coin Offerings.”
To ensure fair play in the ICO market, the island has also launched a regulatory sandbox for the same. Furthermore, back in July, its government made amendments to the Banking Act to establish a new class of bank. This new banking class will specifically cater to provide service to local fintech and blockchain businesses.
The Island territory is also having a strategic plan for the growth of its blockchain industry. The government has signed important MoUs with Binance and Shyft to invest in blockchain education initiatives in Bermuda. This way it plans to provide benefits to the local population from the ongoing development and demand in the blockchain space.
Bermuda’s Friendly Banking Atmosphere
Taking a cue from its successful re-insurance industry, Bermuda is developing a blockchain policy atop the already existing and robust support for fintech. Bermuda also has a huge financial support from British banks.
For many years, the Atlantic island has had a reputation of being a good host to major league businesses. Thanks to the reach of these banks to international financial platforms, the remote island became an attractive destination for financial organizations.
According to a report released by Bermuda Business Developments Agency, the island will generate $286M USD for creating every 1,000 blockchain jobs.
Taking Necessary Security Precautions
Although Bermuda welcomes blockchain and cryptocurrency businesses to its shore, it doesn’t compromise on security aspects. To enter the island’s market, blockchain companies have to satisfy some key requirements and criteria set up by its government.
The government has established several due-diligence practices. It requires additional information on the source and structure of company funding. You usually don’t get to see such practices in other crypto-friendly destinations. Hence, this can prove to be a challenging task for the companies as the process requires a few weeks to complete.
As a result, the island aims to develop a conducive environment for both – the businesses as well as the local economy.
Bermuda has recently joined the ranks of Switzerland, Gibraltar, Malta, and Switzerland, for developing crypto-friendly policies.
Regulatory bodies across the globe are taking key initiatives to foster fintech growth and innovation. In one such step, the U.S. SEC recently unveiled a strategic hub called FinHub to spur fintech growth.
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