The Government of Bermuda has announced plans to increase its support for cryptocurrency and the blockchain technology, by tackling the problems in the banking industry.
According to the Premier of Bermuda, Edward David Burt at the 2019 World Economic Forum Annual Meeting held in Davos, Switzerland last week, the announcement for the development of a special bank that accepts cryptocurrency and blockchain companies, will be made this week.
“I’m proud to say that next week we’ll be making an announcement revealing that a bank will be set up in the country that will start accepting crypto and blockchain companies,” David said at the conference.
The conference which was organized to provide a platform for leaders of different countries to speak on a wide range of issues, as it affects them both negatively and positively.
Inadequate Banking Services Hinder Crypto-Related Activities
One of the major constraints that have affected crypto companies in the past have been the access to the financial institution, that would help provide them with basic banking activities.
Countries like India have been reluctant in its support for cryptocurrencies, with the Reserve bank of India issuing a stern warning last year to all financial institutions not to have any dealings with cryptocurrency firms.
This move served as a clog in the wheel for the crypto space in India, as crypto investors were not able to transact on exchanges but, only through P2P networks.
Bermuda Now a Safe Haven for Crypto-Related Activities
Bermuda, on the other hand, had gone a step forward last year by amending the Banking Act to establish a new class of bank to provide the basic banking services to blockchain and cryptocurrency organizations.
However, despite the amendment put in place, some banks refused to comply with the directive, as Premier Burk promised to use this special bank to tackle the problem.
“Despite the robust regulations put in place, to date, our four local banks have been unwilling to offer services to newly incorporated fintech and distributed-ledger technology companies. This is a problem that we must fix or else Bermuda will not be able to realize the possibility of economic growth that can come from a fintech industry on our shores.”
Since the amendment, the island has recorded some positive development in the crypto sector of the country like the launching of Will McDonough’s new cryptocurrency firm, Icash, in the country.
In the same vein, Binance announced mid last year the setting up of its global compliance center worth $15 million in the country.