Bermuda has hopes on its clear framework for digital assets to attract crypto firms. It is among the few countries in the world to have implemented a complete framework governing cryptocurrencies.
Bermudan officials say their expertise in international commerce, skilled local workforce can be a basis for the creation of a strong digital-assets sector on the island. Jason Hayward, Bermuda’s minister of economy and labor, said they are aware of the recent devaluation in the price of cryptocurrencies. They are confident that it will not affect the island’s ability to become a crypto hub. The minister believes that the industry’s downturn will advance their goal and positively impact their long-term growth and role in this sector.
The island is competing with countries like Malta and Liechtenstein to get grounded in the crypto sector. Bermuda’s strategy comes at a time when many crypto companies said regulatory uncertainty continues to be a hurdle to the industry’s broader acceptance and further growth. The crypto industry in the United States lacks meaningful governance and safety for investors. President Joe Biden issued an executive order in March for government agencies to conduct research on digital currencies.
David Schwartz, the president of the Financial & International Business Association, said Bermuda is emerging as a frontrunner in the establishment of an infrastructure for the crypto industry. The island recently passed a framework for regulating digital assets. It also tightened controls regarding the laundering of illicit funds. But a lack of familiarity with the business, banks, and insurers’ reluctance to work with crypto companies as customers can slow down the expansion of Bermuda’s crypto industry.