The Minister of Economy and Labor of Bermuda promised that in connection with the collapse of Terra, new rules for regulating digital assets will be quickly developed.
Jason Hayward, in an interview, expressed the opinion that the fall of the cryptocurrency market is not an unfavorable event. It can help islands become a magnet for investors in digital assets:
“We are aware of the recent drop in crypto prices and remain confident that this does not threaten Bermuda’s ability to become a crypto hub. This downturn in the industry is likely to support our target and positively impact long-term growth and role in the sector.”
Hayward recalled that the authorities of the islands began to support the crypto industry back in 2018. The government of this British Overseas Territory advocated the adoption of digital assets during a bearish market trend. Now, the minister believes, establishing proper rules is urgent due to the collapse of Luna and its algorithmic stablecoin UST. The official added that such oversight could limit investors’ future losses.
According to the President of the Association for Financial and International Business, David Schwartz (David Schwartz), Bermuda is one of the world leaders in terms of creating infrastructure for the crypto-currency business and the introduction of related regulations. Local authorities have now tightened their money laundering controls by monitoring whether bitcoins or altcoins are involved in illegal transactions.
Legislation approved in 2018 requires all cryptocurrency companies in this overseas territory to obtain a license from the Bermuda Monetary Authority (BMA). This is the regulator that controls the local insurance industry. Currently, the BMA has given the green light to 14 cryptocurrency companies, among them such giants as Circle, BlockFi and Bittrex.
In 2020, the Brazilian management company Hashdex, together with the Nasdaq exchange, announced their intention to launch an ETF for bitcoin on the Bermuda Stock Exchange (BSX).
