The small Island of Bermuda is making huge strides in the blockchain industry by coming up with relevant regulations to attract more business.
To attract more investors, Bermuda has put in place measures to curb illegal ICOs. The measures in place are counter-terrorist financing (CTF) and know your buyer (KYC). Others are anti-money laundering (AML), investor and client protections, and secondary marketplace controls. These measures are in place to control the blockchain space and attract more companies to adapt it in Bermuda. Apart from developing regulations for the industry, the government is also coming up with good proposals for industry players. These proposals are meant to attract more crypto companies while proving a favorable economy for the blockchain industry.
Bermuda government’s techniques seem to be working well. Since the formation of Bermuda Industry Building Company (BDA) in 2017, the Island has been able to make huge progress in regulating ICOs. The Island has partnered with BitFury to create a Virtual Asset Industry Act. On its partnership with BitFury, the government will be able to move the Island’s deeds into a blockchain platform for easy management. Furthermore, regulations have helped the government to ink a $15 million deal with Binance.
Besides putting in place good blockchain regulations, Bermuda is also successful in implementing the best insurance coverage and reinsurance industry. Bermuda insurance industry is worth billions and is in the same league as EU and US in regulatory levels. From the success in the insurance industry, it has been able to successfully implement regulations in the blockchain industry.
Regulation benefits to locals
The benefits of increased uptake of blockchain technology and its subsequent rise in blockchain startups will trickle down to the citizens. In the Bermuda deal with Binance, the latter will invest $5 million in local blockchain startups in a span of 2 or more years. In the long run, cash will go to the locals and empower them financially. Besides the five million, Binance will invest an additional $10 million in blockchain related instructional methods. All these investments will help boost Bermuda’s economy, create more jobs and empower the locals.
Also working on blockchain regulations are; San Marino, Gibraltar, Malta, and Liechtenstein to attract more crypto companies.