The government of Bermuda has announced plans to amend the banking Act with the aim of creating a new class of banks, aimed at providing services to local FinTech and blockchain organizations.
Because local banks refused to provide services to new types of companies, being concerned about the problems of regulation and potential risks, the island’s government gave them a series of consultations to develop the update of the banking Act.
Presenting the bill in Parliament, the Premier of Bermuda and Minister of Finance David Burt said that the position of banks “should be changed to ensure the fulfilment of government promises of economic growth and success for Bermudians”:
“The success of the Fintech industry worldwide depends on the ability of companies operating in this space, to use the necessary banking services. In other jurisdictions, banking was the biggest problem, therefore, in Bermuda it needs to be addressed”.
Bermuda has already taken a number of steps to strengthen its bitcoin-friendly position. In may the government signed a Memorandum of understanding (MOU) with a network of Shyft, which reportedly will provide $ 10 million for technological education of citizens and economic development of the blockchain on the island.
In April was signed the Memorandum of understanding in the amount of $ 15 million. USA with Binance Group, for the purpose of financing educational programs related to fintech technologies and bloccano.
The refusal of banks to provide services for cryptocurrency exchangers and blockchain-companies makes it difficult for some organizations to stay in business and encourages others to move to countries with more friendly regulatory environment