The dramatic collapse of crypto exchange FTX in November 2022 is not moving Bermuda away from accommodating crypto companies, according to the head of the British island territory’s government during an interview with Bloomberg News.
“The future of finance is digital,” said the Bermudan Premier and Finance Minister Edward Burt, who believes there are still considerable benefits to be gained from digital assets and blockchain technology.
Bermuda is a self-governing territory with a parliamentary government and was one of the first places to implement a regulatory framework for digital assets. The territory is just 915 miles away from the Bahamas, where the now-bankrupted FTX once operated.
Burt reportedly faced intense political pressure before FTX’s failure, as the exchange chose the Bahamas instead of Bermuda for its headquarters. According to him, the latest events in the crypto industry had a minimal impact on the territory thanks to its regulations. “I think that approach has been vindicated,” Burt said, adding that regulations in Bermuda are clear and won’t change for any company.
Today, GBBC had the pleasure of hosting @BermudaPremier in Washington, D.C. as he shared how government, private sector, and regulators are working together to create clear, smart regulation around #blockchain & #digitalassets pic.twitter.com/ABYEUMrRaJ— Global Blockchain Business Council (GBBC) (@GBBCouncil) March 31, 2023
According to Bloomberg, Burt met with United States lawmakers and government officials this week in Washington to discuss common standards for digital assets, and topics related to its finance and insurance sectors. He believes that regulators worldwide “must work together” to provide clarity for emergent technologies.
Since 2022, Bermuda’s government has pushed forward its ambitious plans to become a cryptocurrency hub. The island, known for its natural beauty and attractive taxation policies, has been actively expanding its crypto sector since 2017, Cointelegraph reported. According to Burt, 17 licensed crypto firms are currently operating in Bermuda.
Among the latest crypto developments in the territory is the release of Bermuda’s first stablecoin in December 2022 by Jewel Bank. The stablecoin is powered by the Polygon blockchain and focuses on enabling real-time settlements using a stablecoin with a 1:1 peg to the U.S. dollar.