When it comes to attracting new businesses and projects to Bermuda, the island is depending on its clear digital asset regulations.
According to a Wall Street Journal story published on June 3, Bermuda is one of the few nations in the world that has created a comprehensive framework controlling cryptocurrency.
It is believed by Bermudan authorities that the island’s competence in international trade, which accounts for about 27% of its GDP, and a well-trained local workforce provide a foundation for the development of Bermuda’s digital assets industry.
Bermuda’s Economy and Labor Minister, Jason Hayward, in particular, stated: Cryptocurrency price depreciation does not harm Bermuda’s capacity to become a crypto centre,” the island’s government said in a statement on Thursday.
Then he added: As a result of this slowdown in the business, our long-term development and influence in this area are expected to be enhanced.”
It’s a race to the bottom for a piece of the crypto-industry in Bermuda
Currently, Bermuda is vying with nations like Malta and Liechtenstein to get a foothold in the crypto industry. Many cryptocurrency businesses have said that regulatory uncertainty continues to be a major obstacle to the industry’s wider adoption and future expansion. Bermuda’s plan to attract bitcoin enterprises comes at this moment.
Investors in the bitcoin market in the United States are particularly vulnerable due to a lack of effective regulation and oversight. Digital currency research was authorised by an executive order signed by President Biden in March.
There is no surprise that Bermuda is promoting itself as a hub for crypto activity. As a result, Bermuda has emerged as an early leader in the development of an infrastructure for the cryptocurrency business, according to David Schwartz, head of Bermuda’s Financial & International Business Association.
Regulation of digital assets has been strengthened, and money laundering is now more difficult in Bermuda as a result.