Burt: Fintech leaders not coming to Bermuda to see inside Westgate – The Royal Gazette

Updated: 01 May 2023 07:44

Fintech wants regulation: David Burt, Premier (File photo by Akil Simmons)

Westgate Correctional Facility has a spectacular ocean view, but digital asset companies don’t set up shop so their executives can see inside it, David Burt told a major fintech conference.

The premier spoke on stage yesterday at the Consensus 2023 festival in Austin, Texas, which is one of the world’s largest fintech conferences.

“Bermuda is an excellent place to raise capital, but a terrible place to hide it,” said Burt of Coindesk’s online news service. “Yes, our prison has a sea view, but it is still a prison. I promise you will not enjoy your stay.”

The story said Burt, who led a large delegation to the conference which concluded yesterday, said Bermuda has the regulatory clarity that companies in the digital asset space require – and have also sought. This was in contrast to some jurisdictions around the world.

Bermuda created one of the world’s first digital asset regimes with the Digital Asset Business Act 2018.

It has three types of licenses: a “T” license for firms that test; an “M” license for firms wishing to expand their business; and an “F” license for mature companies.

Coinbase, for example, recently applied for a digital asset license in Bermuda.

In the United States, it has asked a US court to force the Securities and Exchange Commission to create a rulebook for crypto, while also complaining that the SEC is alleging violations “on the fly.”

Coinbase, the largest US cryptocurrency exchange, has been served with what is known as a Wells Notice in the US, meaning that its spot trading, staking, custody and institutional trading operations were at risk.

The SEC’s warning to Coinbase noted that the regulator would allege that Coinbase offered and sold unregistered securities, in violation of federal law

Burt told the consensus conference: “We have very firm regulation, very tough regulation, but it is the fact that we have regulatory clarity.

“We know what a digital asset is … as it is clearly defined in our law. That’s something I think businesses appreciate, and I think that’s why businesses come to our shores, he said.

Mr Burt also spoke on “The Hash” a discussion on current events in fintech. He talked about crypto regulation.

You can find that video here