Bermuda is updating the banking legislation to serve blockchain companies. The state government has announced plans to amend the law on banking activities in order to create a new class of financial institutions that will provide services to fintech and blockchain companies.
Local banks refused to provide services to the new types of companies, being concerned about regulatory problems and potential risks. As a consequence, crypto companies were denied in many options. The government of the island held a number of consultations with financial institutions to develop an update of the Banking Act.
The economy of Bermuda can receive additional support from the crypto sector after active work on the formation of amendments. Premier and Minister of Finance of Bermuda David Burt, presented the bill in Parliament. He stressed that the position of banks can not prevent the fulfillment of promises with respect to economic growth and the success of the residents of the state.
“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,” Burt said.
The bitcoin-exchange Binance plays an active role in drafting legislation for the cryptocurrency industry of Bermuda. Trading platform signed a memorandum of understanding (MOU) with the country’s Premier David Burt. Under the MOU, the Binance Charity Foundation will put $10ml toward educational programs related to blockchain. The company will also provide up to $5ml in investments in new Bermuda-based blockchain companies through Binance Labs.
By Ekaterina Ulyanova