Bermuda's pro-crypto government is winning over startups
October 22 2018 - 6:28AM
ADVFN Crypto NewsWire
Image Credit: ESB Professional / Shutterstock
For many, Bermuda brings to mind palm trees, pink-sand beaches,
and the famous business-suit dress shorts for men, but Bermuda has
quietly become a safe haven not just for vacations, but for
blockchain visionaries.
While the world waits to see what the U.S.’s SEC will decide to
do with blockchain ventures, and Asian countries likewise wait for
clarity from policymakers, blockchain innovators are finding
sanctuary in Bermuda. Thanks to forward-thinking and groundbreaking
policy initiatives, Bermuda has become a hot spot for blockchain
businesses.
A pro-crypto government
Blockchain and cryptocurrencies can’t get anywhere without
government support. It’s not surprising that the nations that have
pulled ahead of the pack when it comes to progressive legislation
regarding blockchain have lithe, efficient governments that can
pivot quickly: Malta, Lichtenstein, Gibraltar, and Bermuda.
Bermuda launched a task force
specifically to tackle the issue of blockchain in 2017. The task
force’s mission is to “advance the regulatory environment” and to
“develop Bermuda as a destination for Utility Tokens, Tokenized
Securities, Cryptocurrencies, and Coin Offerings.” Bermuda isn’t
just accepting of blockchain, it’s rolling out the red carpet to
become a crypto destination, and it is succeeding.
The island territory has already passed laws and a
regulatory sandbox for ICOs, and in July it even created a new class of bank just to cater
to FinTech and blockchain companies. This summer Premier David Burt
released the names of Fintech companies that
have been incorporated on the island. While these names are
changing, and more companies are registering regularly, Burt’s list
references 22 companies currently incorporated in Bermuda and
another 21 that have “reserved their names to be incorporated.” And
Bermuda is also being strategic about its own development: It has
signed memoranda of understanding with several blockchain
companies, including Shyft and Binance, stipulating that the
companies will invest in blockchain education initiatives in
Bermuda to help the local population benefit from the industry and
encourage economic activity.
Hospitable Bermudan banking
Bermuda is building its blockchain policy on top of its robust
existing support structure for FinTech, thanks to the success of
the reinsurance industry in Bermuda, (which is literally insurance
for insurance companies, if you’re not familiar).
As a British Overseas territory, Bermuda also has the financial
backing of the UK and ties to well-known, trusted British banks.
It’s at least partially thanks to these banks, known
internationally for their security, that Bermuda is a popular
destination for hedge funds and other multinational corporations.
The country has built up a reputation for being a good host for
major league businesses over many years.The Bermuda Business
Developments Agency released a report, estimating
that Bermuda will generate $286 million for every 1,000 blockchain
jobs created.
It doesn’t hurt that Bermuda’s premier majored in finance and
information systems and even founded his own IT consultancy before he
ever entered politics. His background shines through in his active
support of building up this infrastructure for blockchain.
Reasonable precaution
Bermuda does take reasonable precaution when registering any new
overseas venture, however, which is a good thing. There are some
key barriers to entry if you’re interested in setting up shop
Bermuda, but it’s worth it.
Bermuda can be a challenging place to open a business compared
to other locations known for this purpose, such as Delaware in the
U.S. This is because Bermuda institutes several due-diligence
practices and requires information about company funding and
structure that many other locations do not. This process can take a
few weeks.
So while Bermuda is a nourishing and supportive environment for
nascent blockchain companies and blockchain giants alike, that
should not be confused with a lax approach.
Extra perks
My company chose Bermuda as our home in April of this year for
all of the above reasons, plus some additional benefits. Before
making our decision, we looked at Malta, Switzerland, Gibraltar,
and Singapore. We’re an American company, so the fact that Bermuda,
unlike most of the other pioneering blockchain territories out
there, is in the western hemisphere is a huge bonus. It’s easy to
travel there and back in a day, and there’s little time
differential to worry about.
Additionally, the extra security rigors that the government
applies to incoming businesses seem similar to what we’re likely to
see the SEC apply in the U.S., which means we’ll be better prepared
and in line with potential policy when it comes time for that.
Bermuda is a lot easier for our Chinese partners to access than
other countries on the pro-blockchain front. Although Chinese
citizens do need a visa, if they already have a multiple-entry visa
to the United States, they don’t need any additional qualifications
to enter Bermuda. Considering the huge role Chinese players already
have and are likely to have in the blockchain scene, this is a
significant plus if you’re looking for a place to plant your roots
as a business.
Bermuda has developed a reputation as a conscientious,
strategic, and forward-thinking actor in a burgeoning field that
requires both enthusiasm and discernment to flourish.
Source: VB
By
Scott Harper, BoxBit
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