Bermuda’s Premier and Minister of Finance, Edward Burt, has reaffirmed the territory’s commitment to digital assets and blockchain technology, despite the November 2022 collapse of crypto exchange FTX in the neighboring Bahamas. Burt believes the future of finance is digital, and there are still significant benefits to these the technologies. He noted that regulations in Bermuda have a minimal impact on the territory and the regulations are clear and will not change for any company.
Bermuda, a self-governing territory with a parliamentary government, was one of the first places to implement a digital assets regulatory framework. It is only 915 miles away from the Bahamas, where FTX once operated, and Burt reportedly faced intense political pressure before the exchange’s failure when it chose the Bahamas instead of Bermuda as its headquarters. However, according to Burt, the recent events in the crypto industry had a minimal impact on the territory thanks to the regulations.
Burt recently met with US lawmakers and government officials in Washington to discuss common standards for digital assets, as well as topics related to Bermuda’s financial and insurance sectors. He believes that regulators around the world must work together to provide clarity for new technologies.
Despite the challenges, Bermuda continues to show strong interest in digital assets. The territory recently released its first stablecoin, powered by the Polygon blockchain, in December 2022. The stablecoin focuses on enabling real-time settlements using a stablecoin with a 1:1 link to the US dollar.
Bermuda’s digital asset regulations have made it an attractive destination for crypto and blockchain companies. The territory’s government actively encourages companies to set up there and has taken measures to streamline the registration process. In addition to the regulatory framework, Bermuda has a strong infrastructure, including high-speed internet, and skilled finance and technology professionals.
Burt’s confirmation of Bermuda’s commitment to digital assets and blockchain technology is a positive sign for the crypto industry, which has faced significant regulatory challenges in recent years. The area’s stable regulatory framework and commitment to innovation show that there are places where crypto and blockchain companies can thrive while complying with regulations.
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