Bermuda Releases Draft Regulations for Cryptocurrency Market in the Country

While other countries ban the new financial technology, Bermuda remains optimistic. Having decided to follow the newest trends in the financial market, the Bermuda Monetary Authority issued a draft of “Bermuda’s fintech strategy” for regulating digital currencies and ICOs.

"The emergence of new financial products and services created through the use of technology has opened new and exciting opportunities for entrepreneurs and businesses," Wayne Caines, the minister of national security of Bermuda said.

Caines announced the draft in a conference consisting of around 150 delegates from largest business companies on April 12, 2018. He pointed out how important the implementation of virtual coins and blockchain technology was and thus called for further development of the financial technologies that can stimulate the country’s economy.

Question of Legalization

The consultation draft states that crypto coins can be digitally traded but they have no legal tender status. They only perform a monetary function within the crypto community of traders.

The document says that the cryptocurrency market differs according to several business types, including ICO issuers, cryptocurrency exchange providers, bitcoin miners, and so forth. The draft regulation is also seen as a way of preventing terrorism financing and money laundering.

ICO Regulation

Any ICO issuer will need to be given consent by the finance ministry. But before that, it is necessary to submit the mandatory information according to the Companies and Limited Liability Company (ICO) Act. The companies will need to provide authorities with following data:

“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.”