Bermuda is the latest country that wishes to be in the forefront when it comes to crypto and its regulations. It is now set to develop an extensive and comprehensive crypto regulatory framework.
Through maintaining this transparency, Bermuda is attempting to attract more cryptocurrency related projects, and companies who are enthusiasts in this particular field.
As Bermuda remains one of the countries that has decided to approach the digital asset in an embracing and positive manner, the country could become one of the forerunners in the decentralised finance sphere.
Many a times businesses have second guessed their decision to offer the digital payment option because there has been a lot of uncertainty around the regulatory bit. Just by taking care of that, Bermuda could soon turn into a crypto hub.
Jason Hayward, Bermuda’s minister of economy and labour, quoted,
We are aware of the recent devaluation in the price of cryptocurrencies and remain confident that it does not threaten the island’s ability to become a crypto hub. This industry downturn is likely to advance our goal and positively impact our long-term growth and role in this sector.
Comprehensive Regulatory Crypto Framework
The regulators of the country have said that as far as their understanding goes, 27% of Bermuda’s economy accounts for the international businesses.
This also includes their local trained workforce. If regulations around crypto are made comprehensive and transparent, chances are that the country could be transformed into a thriving digital asset hub.
If this happens successfully, Bermuda will be in competition with other jurisdictions to become an important part of the industry, such as Malta and Liechtenstein.
It is quite refreshing to see that despite the topsy turvy conditions that are prevailing currently across the industry, Bermuda is still eager to join the club of adopting and nurturing cryptocurrencies.
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Can There Be Some Possible Roadblocks?
Bermuda is known for its offshore insurance and reinsurance industry. Now, with the possible disadvantages that can occur along the way, will be the the nature of the digital asset’s industry. This year, so far, it has been excessively choppy for the crypto industry.
Despite these possible problems, Bermuda’s regulators seem quite confident about their recent move. The island reportedly has been working to expand the financial technology and as a result advancing its crypto industry as well.
With the recent collapse of Terra and Luna, the market went into a complete frenzy. Speaking about the same, Bermuda’s regulators stated that the country is specifically adept to dealing with risk mitigation and understands the importance of financial oversight.
This experience comes from being a insurance and reinsurance industry. Apart from this, there aren’t much immediate roadblocks for Bermuda. On the brighter side, Bermuda lacks the red tape, which in turn will make regulatory framework an easy deal and will help blockchain companies to set up quickly and successfully.