Bermuda Banks Are Working On A Clear Regulatory Framework To Attract More Crypto Firms
Bermuda is betting on the clarity of its digital asset regulations to attract more crypto projects and enterprises, despite the current volatility in the cryptocurrency market.
According to a report posted on June 3 by The Wall Street Journal, Bermuda is one of the few countries in the world to have created a comprehensive framework governing cryptocurrency.
Bermudan officials hope that their competence in international trade, which accounts for roughly 27% of the island’s GDP, combined with a talented local workforce, will form the foundation for the island’s development of a robust digital-assets sector.
Bermuda’s Minister of Economy and Labor, Jason Hayward, remarked in particular:
“We are aware of the recent devaluation in the price of cryptocurrencies and remain confident that it does not threaten the island’s ability to become a crypto hub.”
“This industry downturn is likely to advance our goal and positively impact our long-term growth and role in this sector.”
Bermuda is now competing with countries such as Malta and Liechtenstein for a piece of the crypto pie. Bermuda’s plan to attract cryptocurrency firms comes at a time when several crypto firms have stated that regulatory uncertainty remains a barrier to the industry’s wider adoption and potential expansion.
In particular, the cryptocurrency market in the United States now lacks adequate supervision and investor protection. President Biden signed an executive order in March allowing several government entities to do research into digital currencies.
The idea that Bermuda is attempting to portray itself as a crypto hub has not surprised analysts.
Bermuda is establishing itself as a pioneer in the construction of a cryptocurrency infrastructure, according to David Schwartz, head of the Financial & International Business Association.
Bermuda has just approved a comprehensive framework for regulating digital assets, as well as reinforced its regulations on money laundering.
Two potential roadblocks to the cryptocurrency industry’s expansion in Bermuda are a lack of familiarity within the industry with the anti-money-laundering criteria that must be met in order to obtain a license, as well as a reluctance on the part of banks and insurers to work with crypto companies as customers.
As a result, the BMA has begun to provide service providers with online training to help them better understand the anti-money laundering regulations that the regulator expects of them. Mr. Swan claims that a rising number of banks and insurance are accepting crypto businesses as clients.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews