A bank that will accept blockchain and cryptocurrency companies is on the horizon for the beautiful island of Bermuda, a British Overseas Territory in the North Atlantic Ocean, according to a report. Bermuda is known as being one of the world’s premier offshore financial centres and is very well suited to taking full advantage of the benefits to be had in taking a positive position regarding the blockchain and cryptocurrency industry.
David Burt, Bermuda’s Premier, made the announcement at an event in the Consensys Lounge at the World Economic Forum in Davos. Burt said that the main focus for Bermuda looking at crypto when accepting business was quality over quantity.
“I’m proud to say that next week we’ll be making an announcement revealing that a bank will be set up in the country that will start accepting crypto and blockchain companies”.
Last summer, Parliament passed a bill which would allow for a new class of bank to serve Bermuda-based fintech companies. Mr Burt said that the ICO Bill and the Digital Asset Business Act “set the stage for the increased incorporations and growing commitment to doing business in Bermuda by the most innovative companies from around the globe. The business conducted by these companies is not traditional,” he continued. “ Given their risk tolerance, to date, local banks have been unwilling to offer services to newly incorporated FinTech and distributed ledger technology companies”.
Bermuda Banks Act Amended To Allow Cryptocurrency Companies
The Banks and Deposit Companies Act 1999 will be amended to allow for a new class of bank that will provide banking services to Bermuda-based fintech companies.
“Our traditional banks, those household names, have played their part in this community over many years”, said Mr Burt. “It is a fact of business and a fact of life that survival and growth can only be achieved through an ability to evolve and innovate”.
“Legacy industries the world over have lost that ability, and the future belongs to those who can quickly lay a foundation for growth, respond to emerging trends and preserve a reputation for sound management in the process. For countries, it is no different, Bermuda must be nimble or we will be left behind”.
Bermuda has no intention of being left behind. In October 2018, Arbitrade, a cryptocurrency exchange announced the acquisition of Victoria Hall Building in Hamilton, Bermuda as its world headquarters. “Bermuda is a world leader in regulating financially related services,” said Len Schutzman, Chairman and Chief Executive Officer. “The progressive legislation sets the highest standards for those companies who have chosen to establish digital assets businesses on the island and validates the company’s decision to incorporate and domicile our global headquarters in Bermuda”.