Bermuda House Passes FinTech Bill with KYC/ATF Measures for ICO

While some regulatory authorities are either struggling with cryptocurrencies and ICOs or making it hard for businesses and investors, governments like Bermuda’s are already reaping the rewards by advancing its crypto regulations and signing agreements with big players like Binance.

Crypto regulations advances in Bermuda

The Companies and Limited Liability Company (Initial Coin Offering) Act successfully passed the House of Assembly, despite having pushback from the opposition. The FinTech legislation will help in developing a regulatory framework for digital currencies in Bermuda.

David Burt, the Premier and the Minister of Finance said this new legislation would help in building the FinTech industry on the island along with developing the economic diversity. This step will further allow them to take advantage of the rising interest in Bermuda in cryptocurrency market.

“With this Bill, this government has chosen to be bold and take a significant step in the world stage,” stated Burt who is working with the intention to introduce better career opportunities, more jobs and more businesses to the Bermudians along with more income.

The Bill is expected to pass the Senate this week that covers various facets of cryptocurrency market including ICOs, exchanges, issuing and selling of cryptocurrency, wallets, and other services.

Joseph Weinberg, the chairman of blockchain KYC/AML solution provider, Shyft explained: “When you look at other current jurisdictions, they have either not been banking hubs traditionally, do not have the best track record when it comes to KYC/AML, or are in developing countries that aren’t presently suitable to support rapid growth of a technology or financial system. Bermuda does.”

Also, read: ASIC To Subdue ICO: Australia Covers All ICO Bases, No Chance To Escape

Bermuda’s reputation for successful regulation & signing a MoU with Binance

“The reason the world is becoming so energized about being in Bermuda is not blockchain. They are excited because we do things to a very high standard.”

However, the opposition has its concerns about this as Grant Gibbons, who is the member of political party One Bermuda Alliance, believes an economic impact assessment would have been useful as ICOs are highly speculative and risky that could damage the reputation of Bermuda if right precautions aren’t put in place.

Gibbons commented that “a lot of regulators have taken a pretty strong approach to this” and has put forward six pages of changes as he believes the government might have moved too quickly.

The bill was passed just an hour after Burt signed a memorandum of understanding (MoU) with the biggest cryptocurrency exchange Binance that will involve $5 million investment in Bermuda’s blockchain companies and $15 million dollar worth of funding for FinTech related educational programs by Binance Foundation.

Which country do you think needs to take an advanced approach to ICOs as Bermuda?