Bermuda Outlines Proposed Crypto Legislation to Attract Entrepreneurs

Bermuda Outlines Cryptocurrency Regulations to Attract Entrepreneurs

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  • Bermuda is making moves to attract Fintech entrepreneurs by creating cryptocurrency legislation.
  • The country states that the legislation would address the intersection of digital currency and fiat.

Bermuda: According to the Royal Gazette, Bermuda is making moves toward outlining cryptocurrency legislation so as to attract fintech entrepreneurs.  Wayne Caines, Bermuda’s National Security Minister, gave this presentation during the synopsis of its projected fintech regulatory framework at the Bermuda Underwater Exploration Institute.

Wayne added that the Virtual Currency Business Act (VCBA) is scheduled for discussion. Kevin Anderson of the Bermuda Monetary Authority said that the VCBA was proposed though there was no example for the VCBA to follow. He added that the VCBA will be a “shining example” for what the country can achieve. A 150-page paper has been posted on the Bermuda Monetary Authority’s website in respect of the VCBA, with feedback to be submitted by 2nd May.

The act describes “virtual currency business” as the provision of these activities: issuing, selling or redeeming cryptocurrencies, tokens or any other form of digital currencies, including ICOs. The act also covers payment service provider, which it defines as: “a person whose business includes the provision of services for the transfer of funds.”

According to Wayne, the act will also cover cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency services vendors, which it defines as “any business providing specific virtual currency-related services to the public.” The act will cover the integrity of cryptocurrency owners, will give a clearer description of the risks involved in cryptocurrencies, outlines BMA enforcement powers, and covers the intersection of digital currency and fiat, hence curbing fraud and manipulation of the crypto market. The government of Bermuda cannot ascertain the number of investors who will come into the country as it plans its cryptocurrency legislation. Wayne said that this is “phenomenal” that the government will visit London by the weekend to meet with 20 interested firms.

Legislation on ICO, which was slated for discussion this week will require the Finance Minister’s to give consent for ICOs. And issuers of Initial Coin Offerings will have to collect, verify and retain customer identity information.

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