The British Overseas Territory, after taking a more relaxed approach on cryptocurrency legislation to boost its growth within the country has now introduced further regulations that detail on the issuance of ICO’s. Bermuda has been on the forefront of becoming one of the leading countries in cryptocurrency adoption and as such, there has been need for a legal framework that will ensure that the ecosystem remains safe and attractive to investors. Bermuda with its latest legislation becomes the fourth British Overseas Territory to offer progressive legislation to attract investors and startups in the region.
Newly Introduced Regulations On ICO’s
David Burt, the minister of finance in Bermuda read out the new regulations in front of the island’s House of Assembly. According to the new regulations, ICO issuers will be required to provide all information on the people involved in the project, the market, the amount of money being raised, the financing system and the underpinning blockchain project associated with the initial coin offering. In essence, this will allow more transparency over the issuance of tokens and calls for accountability from the ICO issuers over their use of the money raised. As the minister noted, the same will help curb money laundering and terrorism funding within the industry. The minister also added that there will be some new bills tabled in the near future to complement existing bills to ensure financial crime is curbed and punished appropriately.
The call for legislation and regulation of cryptocurrencies was born out of an admission by the government that they could not keep up with the crypto related startups within the region. This has led to a need for regulations that will allow the industry to grow in the best way possible. Bermuda is quickly taking up the space as a leading destination for cryptocurrency startups and one of the best destinations to operate from. Recently, Binance crypto exchange signed a $15 million crypto investment partnership with the country’s government. However, with a population of just about 64,400, the country is not the best place to capitalize based on market size, but indeed a perfect place to operate a crypto startup from.
The country is reportedly planning to launch a national identification program for businesses and residents. By creating a single platform that allows people to comply with KYC and Anti Money-Laundering rules, the process of registering will be faster and less tiresome all while giving users power over their own data.
In many countries, the industry is faced by great ambiguity on regulations but with every passing day, governments from different parts of the world are starting to recognize that there is a need to have a clearly set out legal framework. For a long time, some governments have described the industry as a bubble that will burst soon, while other governments do everything possible to be accommodative like Bermuda.
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