2 - 3 minute read
Bermuda is proving to be an attractive destination for digital asset companies seeking regulatory clarity. Speaking at the Consensus 2023 festival, Bermuda’s Premier, David Burt, highlighted the island’s regulatory clarity as a key factor in attracting these companies. Unlike some jurisdictions around the world, Bermuda’s Digital Asset Business Act 2018 provides regulatory clarity and a framework for digital asset businesses. Currently, the island nation has three types of licenses for digital asset firms: a “T” license for testing, an “M” license for expanding operations, and an “F” license for mature companies.
Coinbase, one of the largest crypto exchanges in the world, recently received a digital assets license in Bermuda. In contrast, the company has requested a U.S. court to compel the Securities and Exchange Commission (SEC) to create a rulebook for crypto, while also complaining that the SEC is alleging legal violations “on the fly.”
Burt emphasized that Bermuda is an excellent place for raising capital but a terrible place to hide it. Contrary to popular belief, Bermuda’s prison has a spectacular ocean view, but it is still a prison. Burt believes that the regulatory clarity provided by Bermuda’s legislation is the main attraction for digital asset companies. The island nation appears to have the regulatory framework in place to support the growth of digital asset businesses.
The Bottom Line
Bermuda’s digital asset regulatory framework is attractive to digital asset companies seeking regulatory clarity. The island nation’s Digital Asset Business Act 2018 provides a clear framework for digital asset businesses, which is why companies like Coinbase have applied for licenses in Bermuda. Regulatory clarity is essential for the growth of the digital asset industry, and Bermuda is positioning itself as a regulatory haven for digital asset companies.