Bermuda Remains Committed to Crypto Despite FTX Collapse
Bermuda’s Premier and Finance Minister, Edward Burt, has affirmed the territory’s commitment to digital assets and blockchain technology, despite the collapse of crypto exchange FTX in nearby Bahamas in November 2022. Burt believes that the future of finance is digital, and there are still considerable benefits to be gained from these technologies. He noted that regulations in Bermuda have a minimal impact on the territory, and the regulations are clear and won’t change for any company.
Bermuda, a self-governing territory with a parliamentary government, was one of the first places to implement a regulatory framework for digital assets. It is just 915 miles away from the Bahamas, where FTX once operated, and Burt reportedly faced intense political pressure before the exchange’s failure as it chose the Bahamas instead of Bermuda for its headquarters. However, according to Burt, the latest events in the crypto industry had a minimal impact on the territory thanks to its regulations.
Burt recently met with United States lawmakers and government officials in Washington to discuss common standards for digital assets, as well as topics related to Bermuda’s finance and insurance sectors. He believes that regulators worldwide must work together to provide clarity for emergent technologies.
Despite the challenges, Bermuda continues to show a strong interest in digital assets. The territory recently released its first stablecoin, powered by the Polygon blockchain, in December 2022. The stablecoin focuses on enabling real-time settlements using a stablecoin with a 1:1 peg to the U.S. dollar.
Bermuda’s regulatory framework for digital assets has made it an attractive destination for crypto and blockchain companies. The territory’s government is actively encouraging companies to set up shop there and has implemented measures to streamline the registration process. In addition to the regulatory framework, Bermuda has a strong infrastructure, including high-speed internet, and skilled professionals in finance and technology.
Burt’s affirmation of Bermuda’s commitment to digital assets and blockchain technology is a positive sign for the crypto industry, which has faced significant regulatory challenges in recent years. The territory’s stable regulatory framework and commitment to innovation demonstrate that there are places where crypto and blockchain companies can thrive while adhering to regulations.
