While in many countries there is still debate about the role of the blockchain, cryptocurrency and their regulation, the lower house of parliament of Bermuda approved the rules governing the ICO or initial coin offerings. And the government signed an agreement with Binance, the world’s largest crypto exchange promising investments in blockchain companies, job and education for Bermudians.

“Minister of blockchain”

 Bermuda is already working on a new law – the Digital Asset Business Act – to encourageWAYNE CAINES 125 portal 300x138 - Bermuda New Cryptocurrency Oasis and regulate investments in distributed accounting technologies and cryptocurrency enterprises. There are so many projects in the works that the Prime Minister of Bermuda E. David Burt jokingly calls Wayne Caines, who is Bermuda’s minister of national security, “the minister of blockchain.”

“We are building an ecosystem here,” Bert said.

“Bermuda is already an innovation hub, thanks to the reinsurance industry”

 

Bermuda has already putting property records on the blockchain and are counting on a further dozen businesses that are under development or are eyeing for investment. Patrick Byrne, Chief Executive Officer of Overstock.com Inc., an online store that accepts payment in Bitcoin, also signed an agreement with the government to create a blockchain “laboratory” there.

Building a legal and regulatory structure

The key moment for the transformation of Bermuda into an incubator for fintech companies is the construction of a legal and regulatory structure of the country, which is the key to the success of the reinsurance industry.

THE “SANDBOX” OF THE GOVERNMENT WILL ALLOW COMPANIES TO WORK ON NEW FINANCIAL TECHNOLOGIES AND DIRECTLY INTERACT WITH REGULATORY BODIES

The Bermuda strategy is not without risk. Regulators around the world are struggling with how to handle the ICO, which last year raised about $ 6 billion worldwide, often with little or no documentation. Financial observers began to get frustrated after last year Bitcoin’s growth of 1,400 percent attracted fraudsters to the cryptocurrency. The largest digital coin, which cost today about 9,700 US dollars, lost almost half of its value, as it reached a record level in December.

Binance finds a quiet harbor

Binance, founded last year in Hong Kong, had problems. The company opened an WeChat Image 20171130201859 208x300 - Bermuda New Cryptocurrency Oasisoffice in Malta after leaving Japan to avoid a clash with local regulators, Zhao Changpeng, the chief executive officer said in an interview last month. The Japanese financial services agency issued a warning to the exchange .

The problems of the exchange reflect the difficulties faced by other cryptocurrency firms that are trying to understand how to act without specific guidance from the regulatory authorities. The US Securities and Exchange Commission said that platforms that act as trading platforms for digital assets considered securities would have to register with the agency as a national exchange or be eligible for exemption. The regulator also summoned firms and individuals for the initial coin offerings, which, in his opinion, could violate the law.

Binance signed an  agreement  with Bermuda,

AGREEING TO SPEND UP TO $ 15 MILLION TO OFFER CLASSES IN COLLEGES FOR BLOCKchain AND INVEST IN COMPANIES WORKING WITH THIS TECHNOLOGY

The courses will begin this summer and will focus on compliance and software development, Bert said. Professors will be well paid for teaching in Bermuda.

“We’re hoping this fintech push mirrors the success we had with the insurance industry in the eighties,” said Sean Moran of the Bermuda Business Development Agency. “You have to continue to find what’s next.”

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