Jason Hayward – Bermuda’s Minister of Economy and Labor – believes the island has the potential to turn into a global hub of the cryptocurrency industry. On the other hand, the sector should operate under a broader regulatory framework to give investors more protection in events such as the recent collapse of Luna/UST, the politician said.
Crypto Crash Isn’t a Concern for Bermuda
Bermuda’s Minister of Economy and Labor – Jason Hayward – does not see the recent collapse in the cryptocurrency market as a natural adverse event. In his view, this could help transform the island’s goal into a digital asset hub:
“We are aware of the recent devaluation in the price of cryptocurrencies and are confident that it does not threaten the island’s ability to become a crypto hub. This industry downturn will further our goal and positively impact our long-term growth and role in this sector.” likely to do.”
Hayward recalled that Bermuda authorities began to open their hands to the cryptocurrency space in 2018. The government stood as an advocate of the asset class even during the 2018 bear market, indicating that this support could be protected during the current downtrend.
Nonetheless, the minister said that due to the collapse of Terra’s native token Luna and its algorithmic stablecoin UST, it is necessary to establish proper regulations. Such monitoring could limit losses for future investors, he added.
According to David Schwartz – President of the Association for Financial and International Trade – Bermuda is one of the world leaders in terms of setting up infrastructure and enforcing fair regulations for crypto businesses. Local authorities have also tightened anti-money laundering controls, monitoring whether bitcoin or altcoins participate in illegal transactions.
Law approved in 2018 requires all cryptocurrency companies in Bermuda to be licensed from the Bermuda Monetary Authority (BMA). The island’s top financial watchdog also regulates the home insurance and reinsurance industry.
The BMA has given its green light to 14 crypto firms operating on local soil, some of the notable ventures being Circle, BlockFi and Bittrex.
worldwide crypto hub
Portugal and Gibraltar deserve attention when it comes to countries with a positive outlook on the digital asset industry. The former treats the asset class as currency and does not impose VAT or other taxes on local investors. Recently, the country’s authorities swooped in to introduce such a tax but ultimately rejected the proposal.
The British Overseas Territory of Gibraltar is another example. It has a regulated cryptocurrency regime designed to protect businesses dealing with the asset class and is one of the leaders in terms of blockchain adoption.
Not long ago, the major Chinese crypto exchange – Huobi – revealed its intention to move its spot-trading operations there.
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