Bermuda still open to crypto firms, premier says: Report

by · March 31, 2023

The dramatic collapse of crypto exchange FTX last November is not moving Bermuda away from accepting crypto companies, according to the head of the British island territory’s government during an interview with Bloomberg News.

“The future of finance is digital,” said Prime Minister and Chancellor of the Exchequer Edward David Burt, who believes there are still significant benefits to be gained from digital assets and blockchain technology.

Bermuda is a self-governing territory with a parliamentary government and was one of the first places to implement a digital assets regulatory framework. The territory is just 915 miles away from the Bahamas, where the now-bankrupt FTX once operated.

Burt reportedly faced intense political pressure before FTX’s failure, when the exchange chose the Bahamas instead of Bermuda as its headquarters. According to him, the recent events in the crypto industry had minimal impact on the territory thanks to the regulations. “I think that approach has been vindicated,” Burt said, adding that the regulations in Bermuda are clear and will not change for any company.

According to Bloomberg, Burt met with US lawmakers and government officials this week in Washington, DC to discuss common standards for digital assets, along with topics related to the financial and insurance sectors. He believes that regulators around the world “must work together” to provide clarity for new technologies.

Since 2022, Bermuda’s government has been pushing its ambitious plans to become a cryptocurrency hub. The island, known for its natural beauty and attractive tax policy, has been actively expanding the crypto sector since 2017, Cointelegraph reported. According to Burt, there are currently 17 licensed crypto firms operating in Bermuda.

Among the latest crypto developments in the territory, Jewel Bank in December released Bermuda’s first stablecoin powered by the Polygon blockchain, focusing on enabling real-time settlements using a stablecoin with a one-to-one link to the US dollar.

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