BDA Partner With Govt To Attract Cryptocurrency

November 23, 2017

The Bermuda Business Development Agency [BDA] said they “will take a lead role in an initiative launched by the Bermuda government to accelerate the establishment and growth of digital currency business on the island.”

At a press conference held by Premier David Burt and National Security Minister Wayne Caines, the government announced the formation of a task force comprising two teams to advance Bermuda’s regulatory environment as a destination for utility tokens, tokenised securities, cryptocurrencies, and coin offerings.

BDA Consultant for Emerging Technologies John Narraway was named as chair of the Blockchain Business Development Working Group, while BDA Board member Lydia Dickens will chair the Blockchain Legal and Regulatory Working Group, of which the BDA’s Head of Business Development Sean Moran will also be a member. Minister for National Security Minister Wayne Caines will lead the effort.

“We are pleased to partner with the government and drive business development efforts of this strategy,” said BDA CEO Ross Webber.

“It’s all part of our agency’s push for economic diversification, to bring new business to the island, help boost GDP and create jobs, and ensure existing industry service providers are able to benefit, grow and expand. It’s about innovating based on the strengths of the Bermuda market.”

The BDA said, “The announcement follows recent visits by the BDA to Silicon Valley to encourage start-up incubators to the island and the incorporation of two digital currency entities—e-sports company Unikrn Bermuda—and iCash, an online entertainment enterprise—in the past few months. A

“s well, Bermuda saw the successful residency of Hub Culture’s digital currency-powered innovation campus at the Ariel Sands property this summer. Another company, Vaphr, founded by Aron Dutta, the former global head of blockchain at IBM and managing director at Cisco Systems, is also in the process of incorporating its global platform on the island.

“There are significant opportunities in the sphere of cryptocurrency, but that window is getting smaller and moving faster than ever before,” said Narraway, who has been examining emerging technologies for the BDA, including crypto assets, artificial intelligence, and biotech. “We are looking at all these areas and zeroing in on the key ones to move on.”

Premier Burt said a regulatory framework for distributed ledger technologies [DLT] would become operational in early 2018. The framework would regulate the activities of firms operating in or from Bermuda that use DLT to store or transmit value belonging to others, such as virtual currency exchanges, coins and securitized tokens.

The BDA explained, “Coins or cryptocurrencies are digital currencies like bitcoin in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. They operate independently of a central bank.

“Tokenised securities represent shares of a business, while utility tokens are services or units of such that can be purchased, providing a way to fund projects of shared infrastructure.”

“Bermuda is committed to building upon its position as an innovative international business centre,” said Premier Burt, “And is considering a complementary regulatory framework covering the promotion and sale of utility tokens, aligned with the DLT framework.”

The government said Bermuda-based token issuers would need to join and comply with the code of conduct of the new Bermuda Crypto Association, including measures to ensure enhanced business transparency, KYC and AML.

The BDA has established a webpage providing information for those interested in establishing a cryptocurrency business in Bermuda: here

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Comments (11)

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  1. Um.... says:

    This may seem like nothing right now but it’s better we get ahead (or at least stay in pace) of cyber technologies. They could do more to disrupt our economy than foreign politicians trying to change tax laws. This isn’t a flashy announcement as many don’t even understand cryptocurrencies or blockchain but this is a move in the right direction for the PLP. But they need to be quick to get a framework in place.

  2. Itstoolate says:

    These people are actively seeking to attract to our shores a deflating bubble? PLP lunacy version 2.0…

    • Trufth says:

      I heard they were going to launch manufacture of VHS tapes in the near future. Fingers crossed. Exciting times.

  3. Itstoolate says:

    If you don’t see 344% increase YTD (Long Bitcoin) as a bubble then god help you fools…

    • Baraka says:

      I don’t know where you got 344% from. Bitcoin has gone from $966 to over $8200 YTD, using the price on Bitstamp. That’s a nearly 850% increase since January 1st. Bubble? Nah… ;)

      • Baraka says:

        Scratch that. It’s now up 1100% YTD after power jamming through the $10,000 mark today. I guess it’s off to $50,000 next, then $500,000- the latter of which has been predicted by many, including John McAfee.

  4. aceboy says:

    The timing on this is interesting/convenient.

    If not done properly this could see Bermuda on AML blacklists worldwide.

    I note that the Executive director of the Gaming Commissioner just resigned and his comments speak volumes. Wake up Bermuda. Not WOKE WAKE UP!!

  5. The Original Truth™ says:

    Bad idea PLP! We are already in the spotlight and now you want to do business in currencies known for their laundering and tax evasion qualities. There are plenty of other successful Blockchain businesses that use the code’s strength for non-Cryptocurrency purposes.

  6. Joe Bloggs says:

    “The government said Bermuda-based token issuers would need to join and comply with the code of conduct of the new Bermuda Crypto Association, including measures to ensure enhanced business transparency, KYC and AML”

    I hope such issuers will also be regulated by the BMA in the same way banks and insurance companies are. Other jurisdictions trying this market have failed and have lost other business as a result of loss of reputation.

  7. The Original Truth™ says:

    “The Bermuda Monetary Authority in conjunction with the Ministry of Finance will work together to draft a letter or document confirming; Utility Tokens are not a security as long as there is no promise of future value. This will allow companies from all over the world to set up in Bermuda for Crowd Funding”

    The majority of securities never promise a future value. This is impossible to ensure. At present all other cryptocurrencies are used as securities so why wouldn’t Utility Tokens be? If a form of currency isn’t a security than it’s useless and it’s not needed.

  8. Mmmmhmm says:

    Thank god I own some BTC and ETH. If you wanna jump ahead. Comment below