Bermuda advances crypto hub plans, unfazed by market downturn

By Holly Shields

June 7, 2022 0

The island territory of Bermuda has doubled down on plans to expand its cryptocurrency sector, despite the ongoing volatility in the crypto space.

In an effort to attract international crypto businesses, the government has already granted 14 licenses to digital asset companies looking to operate in the region. Of those 14, 4 have been approved by the Bermuda Monetary Authority (BMA) this year.

In conversation with the Wall Street Journal (WSJ), Bermuda’s Minister of Economy and Labor, Jason Hayward, asserted the territory’s bullishness towards the crypto space, despite a dip in the market.

According to Hayward, Bermuda is “aware of the recent devaluation in the price of cryptocurrencies” and remains “confident that it does not threaten the island’s ability to become a crypto hub.”

In fact, it’s believed that the industry downturn will positively impact its long-term growth and role in the emerging sector.

Bermuda has been actively working towards its digital asset hub ambitions over the past few years. The region was one of the first in the world to adopt a comprehensive regulatory framework governing cryptocurrencies.

This may come as no surprise, as the sunny holiday destination has long been considered one of the key offshore financial centers of the world, with its attractive taxation policies and business-friendly approach.

In 2018, Bermuda brought forward a regime to regulate initial coin offerings, as well as virtual assets, under the Digital Asset Business Act and the Companies and Limited Liability Company (Initial Coin Offering) Amendment Act 2018 (ICO Act).

Despite the recent crash wiping off over US$1 trillion from the global crypto market cap, the island remains unfazed by the volatility. As Hayward points out, the market has endured several storms over the past half-decade.

Through a growing crypto-friendly framework and transparency on the part of the BMA, Bermuda is aiming to attract more high-quality crypto projects from foreign businesses.