Last year, Bermuda’s Finance Minister had launched the Blockchain Task Force to create a blockchain friendly environment in the country. Now, they are all set to become the first country to regulate ICOs. This will ensure that Bermuda becomes a cryptocurrency friendly country for interested organizations and startups.
Initiative in Bermuda
In their recently released statement, the Finance Minister proposed a bill in front of the parliament. Furthermore, Burt mentioned about the growth in blockchain related developments. He also spoke about the criminal activities recorded in particular areas using blockchain. He said that even though these setbacks exist, the technology behind blockchain could easily disrupt traditional methods. And that makes it important for the government to come up with a legal framework. This will ensure that people stay within the limits of specified regulations.
Companies engaging in ICOs have experienced tremendous growth through increased funding from future customers, and without the use of traditional funding methods such as commercial lending, venture capital investments and Initial Public Offerings of ownership interests. ICOs have been used to enhance existing product and service offerings and to develop and implement new ones. And all without the added costs and burdens of having to hire expensive middlemen to arrange transactions.
Bermuda has an opportunity to become a global leader in the Fintech space by being one of the first countries in the world to specifically regulate ICOs. The proposed regulatory framework will provide legal certainty to companies looking to conduct ICOs in Bermuda.
Also read: Switzerland all set to become CryptoNation
The government will draft the new bill by making aking a few adjustments to existing Bermuda laws. The Finance Minister will grant permission to ICOs to operate legally. In order to get this permission, ICOs will have to provide critical information about the coin, like the team involved, roadmap, future product development, hard cap or soft cap and details of the digital asset, among others.
While many countries have shown a negative attitude towards the growth of cryptocurrencies, Bermuda is certainly positive about it. Burt has expressed that Bermuda must leave its “comfort zone” and welcome technological innovation in its land. The country’s parliament is requested to discuss this matter immediately, however, no date has been specified in the statement. He ended the announcement by saying
“We will not stand in the shadows and watch it pass us by.”