Bermuda is already attracting more cryptocurrency related businesses that want to come into the country. The friendly regulation will act as a catalyst. Companies will have required adhering to anti-money laundering and terrorist financing regulations.
Bermuda, a British overseas territory in the North Atlantic Ocean, is considering a bill proposal that could allow the country to embrace ICOs and cryptocurrency. The Bermuda Monetary Authority has issued a consultation paper on draft regulations relating to ICOs and cryptocurrencies in the country.
Generally, the proposal encourages ICOs and crypto in the country. Minister of national security Wayne Caines said the proposal was a landmark for Bermuda.
“The emergence of new financial products and services created through the use of technology has opened new as well as exciting opportunities for entrepreneurs and businesses.”
He said the proposal would provide legal certainty for companies holding ICOs in the country. He added that embracing “this new world” with a responsible regulation could help attract new companies and investments to the country. As well as boosting government revenues and a new career.
However, the proposal points out that there is need to collect and retain key information about customers since cryptocurrencies have tremendous risks. The risks require robust Anti-Money Laundering/Anti-Terrorism Financing (AML/ATF) regulation according to the paper.
However, the businesses holding ICOs should collect such information. It means crypto exchanges; wallet services and payment providers will be able to collect customer information to check any illegal activity. Additionally, these companies will need to adhere to other regulations — “Companies and Limited Liability Company (Initial Coin Offering) Act. Further, the minister of finance should give consent of the business activity relating to ICO.
The companies will also need to provide information such as any product and service that it will provide, the timeline for project completion, ICO target amount, rights, features, functionality, and transferability of the digital assets. They will need to confirm that their platform is capable of collecting, confirming and storing user identification information. They also report information to demonstrate compliance and auditing of ICO transactions.
Attracted attention from crypto businesses
The country is attracting more companies willing to move to the Island territory. Caines reported that 20 companies lined up to meet them in London in line with plans to move to the country — and with crypto business interests. Therefore, there is no doubt that the crypto-friendly regulations will attract more businesses in the territory. It might be as successful as Gibraltar and Malta territories in their current approach to attract crypto businesses through a crypto-friendly regulation.
Bermuda Monetary Authority (BMA) is seeking for inputs from citizens about the anti-money laundering law aimed at organizing the cryptocurrency industry.