The government of Bermuda is taking steps to regulate the Crypto industry. Several regulations have been put forward with regards to the cryptocurrency business by the Bermuda Monetary Authority. A consultation paper has been released. It also focuses on initial coin offerings (ICOs). The crypto sector in Bermuda is still developing and this bill aims to encourage the growth of the sector and create a framework for the same.
According to Mr. Wayne Caines, the minister of national security, the proposed bill is a “landmark legislation for Bermuda,”. He also said that “The emergence of new financial products and services created through the use of technology has opened new and exciting opportunities for entrepreneurs and businesses.” “Bermuda’s fintech strategy” was revealed before “more than 150 of Bermuda’s key business partners.” on Thursday by him. Mr. Caines said that the government of Bermuda “recognize[s] that there’s significant interest in virtual currencies and blockchain technology,” and it aims to “become a global leader in the fintech space.”
ICOs were focused upon
The proposed regulations state that “an initial coin offering will be treated as a restricted business activity that will require consent from the minister of finance.”
This means that all ICO issuers will have to follow certain regulations -the “Companies and Limited Liability Company (Initial Coin Offering) Act – in addition to applying for consent from the finance minister.”
A company that seeks approval to conduct an ICO will have to submit complete information pertaining to: “The company conducting the ICO and the underlying digital asset offered for sale; The development and implementation of any product, service or other project related to the ICO, including timelines for completion; The target amount to be raised through the ICO; Rights, features, functionality and intended transferability of the digital asset offered for sale; The technology to be used and confirmation of the ability of the technical platform to enable the collection, confirmation and storage of purchaser identity information; and compliance and auditing of ICO transactions.”
Mr. Caines said “By being one of the few countries in the world to specifically regulate ICOs, we believe that the proposed regulatory framework will provide legal certainty to companies looking to conduct ICOs in Bermuda […] Embracing this new world with responsible regulation could lead to the attraction of new companies and capital investment to Bermuda, additional government revenues, new career, employment and training opportunities for Bermudians and the laying of a foundation for a prosperous future for our next generation of Bermudians.”