The government of Bermuda is planning to amend the Banks and Deposit Companies Act in order to give enough room for innovation in the industry to flourish.
Bermuda, an island group in the North Atlantic Ocean, 1074 km east-southeast of Cape Hatteras, North Carolina, is introducing a new type of banks to boost the growth and development of blockchain and FinTech industries.
Edward David Burt, Premier and Minister of Finance, proclaimed he plans to amend the Banks and Deposits Companies Act 1999 so that the growing technology industries can be properly accommodated.
"FinTech industry needs an innovative, robust banking solution," said Edward in a ministerial statement to the House of Assembly. "The FinTech industry's success globally depends on the ability of the businesses operating in this space to enjoy necessary banking services. In other jurisdictions, banking has been the greatest challenge, and for us in Bermuda, it is equally so and must be resolved."
These new types of banks will be called "Restricted Banks," even though its a primary goal is to have the FinTech industry fully accommodated, Bermuda's citizens and other kinds of businesses will also be maximumly served. Among the revision to be made includes outlines of categories of business ventures the new class of banks can serve, and in addition, a provision that will leave space for more amendments in case a dire need arises with time.
The forthcoming amendment was initially drafted after thorough consultation with the country's banking sector. Sometime back, many local banks have been reluctant to offer banking services to FinTech because of regulatory barriers and repugnance to take risks.
Bermuda is working tooth and nail to stance itself as the main destination for bullish FinTech innovation, having successfully passed an Initial Coin Offering Bill and Digital Asset Business Act to, in a move to allure a large number of blockchain and cryptocurrency companies.
Edward commended FinTech for their endless ability to lay a foundation without delaying for growth to take place, to quickly answer the rising trends and maintain a great reputation for sound management in the due process.
"For countries, it is no different, Bermuda must be nimble or we will be left behind. We made a commitment to build a better and fairer Bermuda." Edward said.