The Island nation of Bermuda has joined the fray as the latest country to reveal its ambition to establish a crypto hub. Before them, various countries worldwide have shown interest in making the territories a cryptocurrency hub.
And the government of Bermuda is not relenting on its ambitious move despite the setback the crypto market is in this year.
The nation has a well-known friendly taxation system and has been working on its crypto space since 2017, as revealed by the Minister of the Economy, Jason Hayward.
Furthermore, Hayward announced on June 3 that the current market crash did not deter the government. Jason added that the crypto market had weathered numerous storms before this, and the current situation is temporary.
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In an interview, Hayward told the World Street Journal that the experience of Bermuda’s regulators in handling foreign businesses is a critical factor. The country will leverage this opportunity to become one of the leading crypto hubs in the world.
Commenting on the recent market crash, Hayward remains bullish that the setback will not hamper the country’s plans in the future.
The Crypto Industry is Key to Bermuda’s Economic Growth
The government of Bermuda believes that the crypto industry has the key to shooting up its long-term economic growth. And the current downturn in the industry will help the country attain its goal and position in the space.
The country’s financial watchdog, the Bermuda Monetary Authority (BMA), has granted 14 licenses to crypto service providers to operate in the British Isles territory. BMA’s chief executive, Crag Swan, disclosed that BMA had approved four permits in 2022.
However, Swan noted that the agency is not looking to approve anyone looking to set up shop in the country. Bermuda seeks quality as part of its ambition to become a crypto hub.
Swan stated that the agency is only considering firms that are fit for operations because it is looking to maintain its excellent service record. The licensing of financial services providers in Bermuda is a thorough process; this applies to the crypto industry as well.
Bermuda’s Regulatory Process
To keep its tradition of ensuring only the best are permitted to operate in the country, it has a licensing system in place to enhance efficiency. According to Hayward, the licensing process in Bermuda is in 3 phases.
The first is the testing stage, followed by the modified and fully approved claims, the last of the three. The timeframe lasts between 5 months and one year in the testing phase. However, the economy minister did not comment on the duration before a license is approved.
While commenting on the pattern of regulations in Bermuda, David Schwartz revealed to the Wall Street Journal that the government is taking the right approach. According to Schwartz, since 2020, the government of Bermuda has been recording successes in preventing money laundering.
However, Schwartz noted that the government should do more due to the changing landscape of financial crimes worldwide.