Bermudian officials led by premier and finance minister David Burt have voted to amend banking laws in favor of blockchain and fintech companies. These changes to the Banking Act follow closely the Digital Asset Business Act and an initial coin offering (ICO) bill recently passed by the Bermudian government.
A new class of banks
The changes to the Banking Act will create a new class of banks that will work specifically to cater to blockchain and fintech companies, combating the current dismissive nature of the banks.
The traditional financial sector in Bermuda has been unwilling to provide blockchain startups banking services, referring to legal and regulatory barriers as justification for this, prompting Burt to introduce these changes in support of economic growth.
He also noted that it is the lack of banking services for the industry that has presented the greatest challenge for growth in the sector globally, describing it as crucial for successful development.
Recent years have seen Burt firmly champion Bermuda as a blockchain friendly nation, earlier this year pushing for ICO regulations that would require the ministry of finance to approve each ICO before its launch.
Burt was last year responsible for creating a blockchain task force to ensure Bermuda was able to provide a hospitable environment for the sector to flourish, with regulatory and legal officials managing the force.
He was also responsible for the successful memorandum of understanding recently signed between Bermuda and the world’s largest cryptocurrency exchange, Binance.
The agreement saw the Binance Foundation offer to provide USD 10 million worth of university blockchain development and compliance training across the country, as well as the investment of USD 5 million in local blockchain companies.
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