Bermuda Financial Minister Introduces New ICO Regulations For Market Clarity
Regulations on Initial Coin Offerings (ICOs) keep expanding all over the world, even in the small, but important island of Bermuda. An announcement has been made on July the 13th by David Burth, the Premier and Minister of Finance of Bermuda, at the House of Assembly.
The main intention behind this framework is to specify the minimum information that ICO projects need to provide before launching. At the same time, there are new compliance measures that companies will have to undertake if they want to conduct an ICO.
Those companies interested in running an ICO will have to inform the product or service they are going to offer, the market audience, the financing system, the amount of money needed and other technical details.
Mr. Burt said that the regulations are pretended to expand the current existing laws against money laundering and terrorism financing. He has also explained that new rules will be proposed before the end of the summer. Moreover, Burt showed how Bermuda is working so as to develop a legal framework to address all the issues that affected the FinTech and blockchain industries.
Several companies are asking for regulations that provide clarity and a better understanding of the market. Additionally, a clear legal framework protects customers and investors against attacks, fraud and scams.
For example, some time ago, the South Korean exchanges Bithumb and Coinrail were hacked and lost over $70 million dollars together. This is a situation that needs to be addressed with better regulatory environments.
The government of Bermuda has also announced plans to release amendments to the so called Banking Act, earlier this month. With it, it would be possible to establish a new class of bank that would provide services to blockchain and crypto-related companies operating in the country. Such a decision has been taken after some banks refused companies related to the crypto world.
David Burt has also signed an important Memorandum of Understanding (MoU) with Binance, one of the most important virtual currency exchanges in the market. The MoU aims to fund educational platforms related to FinTech and blockchain startups.
Burt commented on the matter:
“[Binance’s goals] align with our aims and objectives to provide a leading well-regulated jurisdiction ideally suited to the growth of the fintech industry.”
Binance wants to develop a ‘global compliance base’ in the Bermuda island, creating 40 new jobs of which 30 will be for citizens of Bermuda.
Additionally, the MoU explains that the Binance Foundation will be spending over $10 million dollars in training Bermudians in blockchain technology.
“We think the Bermuda Government and [their] regulatory body are one of the most approachable, most reasonable and most forward-thinking bodies on the planet,”
said Mr. Zhao.
The Binance foundation will also be spending up to $5 million dollars in companies that work with Bermuda-based blockchain networks.