Bermuda Amends Banking Act To Accommodate Blockchain

By Dmitriy

The Bermudian Government has announced its upcoming plans to amend the

Banking Act so that they can establish an all-new class of bank in order to render

services to the local Blockchain and Fintech organizations, as reported by Finextra

on July 2.

This amendment has been carried out due to the fact that the local banks have

apparently refused to offer any kind of banking services to these new companies,

being apprehensive about the potential risks and regulatory issues. This is how the

Government has come up with this new regulation wherein an update to the prior

Banking Act will be developed to resolve this issue.

The Minister of Finance, David Burt and the Bermudian Premier commented in the

context of introducing this bill in the parliament that the banks’ stance “cannot be

allowed to frustrate the delivery on our promise of economic growth and success for

Bermudians.” He went on to add, “The Fintech industry’s success globally depends

on the ability of the businesses operating in this space to enjoy the necessary

banking services. In other jurisdictions, banking has been the greatest challenge,

and for us in Bermuda, it is equally so and therefore, it must be resolved.”

Bermuda has worked tirelessly in order to strengthen its blockchain and its crypto-

friendly position. In May this year, the Government of this British Island Territory

also signed an MOU (Memorandum of Understanding) with Shyft network. This will

provide a sum of $10 million for the economic development and blockchain

technology education on the island.

 

In April this year, Bermuda also signed an MOU of $15 million with Binance Group.

Binance Group is the company behind the leading cryptocurrency exchange called

Binance. This MOU was signed in order to establish funding for all the educational

programs associated with Blockchain and Fintech. Apparently, Binance now has

plans to grow a “global compliance base” on the island. According to Burt, this

move is bound to add at least 40 new jobs, around 30 of which will undoubtedly go

the way of the Bermudians.

It has become rather challenging for some organizations in Bermuda to stay in

business because of banks’ refusal to offer their services to blockchain companies

and crypto exchanges. This has prompted some to even move to other countries

that offer more friendly regulatory environments.