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Bermuda Reveals Draft Crypto Regulations, Plans to Embrace ICOs

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The Bermuda Monetary Authority has issued a consultation paper on draft normals pertaining to “virtual currency businesses” and initial coin offerings (ICOs). The proposed tabulation seeks to create a framework that encourages and fosters the development of Bermuda’s nascent cryptocurrency labour.

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Bermuda Reveals Regulatory Proposals for Crypto Industry

Bermuda Reveals Draft Crypto Regulations, Plans to Embrace ICOsThe ecclesiastic of national security, Wayne Caines, described the proposed regulations a “critical legislation for Bermuda,” adding that “The emergence of new financial products and serves created through the use of technology has opened new and exciting opportunities for entrepreneurs and questions.”

On Thursday, Mr. Caines presented “Bermuda’s fintech strategy” to “more than 150 of Bermuda’s key job partners.” Mr. Caines stated that the government “recognize[s] that there’s substantive interest in virtual currencies and blockchain technology,” emphasizing Bermuda’s prurience to “become a global leader in the fintech space.”

Crypto Sector to be Encouraged Without thought Virtual Currency Not Recognized as Legal Tender

Bermuda Reveals Draft Crypto Regulations, Plans to Embrace ICOsThe consultation paper defines “essential currency [as] a digital representation of value that can be digitally traded,” joining that “such does not have legal tender status […] in any district,” however, fulfills monetary “functions only by agreement within the community of drugs of the virtual currency.”

Whilst the document notes that “The virtual currency sector is miscellaneous in business types,” the major participants are described as being comprised of “ICO issuers,” “effective currency exchange providers and traders,” “custodial wallet providers,” and “practical currency miners.”

The proposed framework will require that tasks facilitating the sale of or providing services relating to cryptocurrencies collect and engage key information pertaining to customers, noting that the cryptocurrency sector “presents tremendous hazard that requires robust […] Anti-Money Laundering/Anti-Terrorism Cash (AML/ATF) regulation.”

ICOs Subject of Particular Focus

Bermuda Reveals Draft Crypto Regulations, Plans to Embrace ICOsUnder the proposed legislation, “an endorse coin offering will be treated as a restricted business activity that desire require consent from the minister of finance.” As such, ICO issuers intention be required to adhere to specific regulations -the “Companies and Limited Burden Company (Initial Coin Offering) Act – in addition to applying for consent from the wealth minister.” Companies applying for consent to conduct an ICO will be required to cater information regarding:

“The company conducting the ICO and the underlying digital asset offered for on sale; The development and implementation of any product, service or other project related to the ICO, numbering timelines for completion; The target amount to be raised through the ICO; Rights, aspects, functionality and intended transferability of the digital asset offered for sale; The technology to be old and confirmation of the ability of the technical platform to enable the collection, confirmation and storage of purchaser indistinguishability information; and compliance and auditing of ICO transactions.”

Mr. Caines stated “By being one of the few boonies in the world to specifically regulate ICOs, we believe that the proposed regulatory framework wishes provide legal certainty to companies looking to conduct ICOs in Bermuda […] Embodying this new world with responsible regulation could lead to the crowd-puller of new companies and capital investment to Bermuda, additional government revenues, new calling, employment and training opportunities for Bermudians and the laying of a foundation for a prosperous later for our next generation of Bermudians.”

What do you think of Bermuda’s proposed cryptocurrency ordinaries? Share your thoughts in the comments section below!


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