The Bermuda government has announced plans to revise its banking laws and establish new banking categories to serve local financial technology and blockchain organizations. To support the development of emerging technology companies, the Bermuda government will provide appropriate banking services and sign a memorandum of understanding to support blockchain education projects to continue to maintain its blockchain and cryptocurrency-friendly status.
According to Finextra reported on July 2, the Bermuda government has announced plans to revise the banking law, establish a new banking category, and provide services to local financial technology and blockchain organizations.
According to reports, the local government refused to provide banking services to new companies due to concerns about regulatory issues and potential risks. The island government decided to revise the banking laws after consulting with banks.
After submitting the bill to Parliament, Bermuda’s Prime Minister and Minister of Finance, David Burt, said that the bank’s position “cannot cause us to undermine our commitment to the economic growth and success of the Bermudians.” He added:
“The success of the FinTech industry around the world depends on the ability of companies in this sector to enjoy the necessary banking services. In other jurisdictions, the banking industry is the biggest challenge, and so is it for us, so this issue must be addressed. ”
Bermuda has taken some steps to strengthen its blockchain and cryptocurrency-friendly status. In May, the UK island government signed a Memorandum of Understanding (MOU) with Shyft Network, which reportedly will provide $10 million for blockchain technology education and economic development on the island.
In April of this year, Bermuda signed a $15 million memorandum of understanding with Binance Group, the operating company of Binance, the world's leading cryptocurrency exchange, to finance financial technology and blockchain-related education projects. According to reports, Binance plans to establish a “global compliance base” in Bermuda, which Burt said will add about 40 news posts, at least 30 of which will be owned by Bermudians.
Banks refused to provide services to cryptocurrency exchanges and blockchain companies, making it difficult for some organizations to continue to operate and for other organizations to move to countries with a more friendly regulatory environment. In Poland, 15 different “financial institutions” have become part of the official complaints filed by the Polish Bitcoin Association (PBS) to the government. PBS said that local banks deliberately refused to provide services to cryptocurrency entities and selectively closed accounts.