Bermuda to Cater to Blockchain & Crypto Projects with Banking Act Amendment Plans
Bermuda Interested In Creating Blockchain Centric Banks
The British island territory is bidding to put its name on the map as an outlier destination for FinTech innovation, having recently passed an ICO Bill and Digital Asset Business Act to attract companies in the blockchain and virtual currency space.
The upcoming amendment to the Banking Act follows terse consultations with local banks, who have been unwilling to provide banking services to the new class of companies converging on the island, citing regulatory barriers and an aversion to risk.
David Burt, the Premier, said: “On July 2, Bermuda will launch the Land Title Registry Office, as planned. The office will work to move all deeds into an electronic format which will eventually replace the current deeds based system.”
He believes that banks should no longer be allowed to frustrate the delivery on our promise of economic growth and success for Bermudians.” He added:
“The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services. In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore it must be resolved.”
Bermuda has taken a few steps to strengthen its blockchain and crypto-friendly position. In April, Bermuda signed a $15 million MOU with Binance Group, the company behind leading cryptocurrency exchange Binance, to establish funding for educational programs related to FinTech and blockchain.
Binance reportedly plans to develop a “global compliance base” in Bermuda, a move which Burt says will add around 40 new jobs, at least 30 of which will go to Bermudians. In May, the Government of the British island territory signed a memorandum of understanding (MOU) with Shyft network, which will reportedly provide $10 million on blockchain technology education and economic development on the island.
The Bermuda Government has also signed an agreement with the Bitfury Group to add blockchain technology to the island’s land registry system. Bitfury will work with Trimble, a land administration company, to bring blockchain technology to their existing land registry system and serve as an educational resource for deploying additional blockchain functions across other government services.