Bermuda Confirms Crypto Hub Ambitions Despite Market Downturn
The Bermuda government is pressing ahead with its ambitious plans to become a cryptocurrency hub despite the huge market crash in 2022.
"We are aware of the recent crypto price devaluation, but remain confident that it does not threaten the island's ability to become a crypto hub," said Jason Hayward.
The small island territory, known for its pristine pink-sand beaches and attractive tax policies, has been actively expanding its cryptocurrency sector since 2017, according to Bermuda Minister of Finance and Labor Jason Hayward.
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He noted on June 3 that the government remains undeterred by the recent drop caused by the collapse of the Terra ecosystem in May, as the market has weathered many storms since 2017.
Speaking to the Wall Street Journal (WSJ), Hayward pointed to the experience of the local economy and regulators in dealing with foreign companies as a key factor that will help Bermuda become a cryptocurrency hub. He also optimistically stated that the drop will not hamper his plans for the future:
We are aware of the recent cryptocurrency price devaluation and remain confident that it does not threaten the island’s ability to become a cryptocurrency hub.
So far, the Bermuda Monetary Authority (BMA) has granted a total of 14 licenses for crypto companies to operate from the territory of the British island, and four of them were approved in 2022, said Crag Swan, CEO of the BMA. .
The total list includes companies such as multi-asset trading firm Class T, cryptocurrency exchange Bittrex Global, USD Coin (USDC) issuers Circle Internet Financial Ltd., and crypto interest account providers BlockFi, which obtained a license in January this year.
Swan highlighted that the BMA is not looking to accept just anyone who wants to settle in Bermuda and is looking for quality over quantity as part of its cryptocurrency hub ambitions.
So obviously the people we want in Bermuda have to be fit and proper, because essentially we're looking to maintain the quality name of the jurisdiction, he said.
Hayward stated that Bermuda's licensing process is divided into three stages: the trial license, a modified license, and finally the fully approved operating license. The testing phase typically lasts between three and 12 months, but he did not comment on how long it takes to become fully licensed by the BMA.
Commenting on Bermuda's regulatory landscape, FATF President David Schwartz told the WSJ that the Bermuda government has been making progress on its anti-money laundering compliance initiatives since 2020, but that there was still work to be done.
The Paris-based FATF sets global anti-money laundering standards, and Schwartz suggested that the success of the cryptocurrency sector may depend on how tightly the government oversees and regulates the companies it offers money to. licenses:
They have great rules and regulations and laws, but in the end it all depends on the application.
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