Bermuda Makes Changes to Banking Act to Support Blockchain Companies

Bermuda makes changes to banking act to support Fintech and Blockchain companies on the island. Officials are planning to establish a new class of bank to render services for this type of firms.

3 July, AtoZ Markets Bermudan government has made a public announcement. The country officials have stated that they are planning to change the Banking Act. They are looking into establishing a new class of bank to render services to local Blockchain and Fintech companies. 

Bermuda Makes Changes to Banking Act to Support Blockchain Companies

According to online reports, local banks have declined to provide banking services to this innovative type of companies. Reportedly, the financial institutions are worried about potential risks and regulatory issues. In relation to this issue, the government of Bermuda has decided to develop an update to the Banking Act. 

Bermudian Premier and Minister of Finance David Burt has stated that the banks’ position “cannot be allowed to frustrate the delivery on our promise of economic growth and success for Bermudians.” He explained:

“The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services. In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore it must be resolved.”

In fact, Bermuda has already taken some significant steps towards becoming a Blockchain-friendly nation. Back in May, the Bermudan government has inked a memorandum of understanding with Shyft network. The latter is expected to provide $10 million for Blockchain technology education in the country. 

Bermuda Binance MoU

Then, in April 2018, Bermudan officials have signed a $15 million memorandum of understanding with Binance Group. The organization is the key operator of the cryptocurrency exchange Binance. The MoU aimed to establish funding for education that is related to the Blockchain and Fintech. Binance has reportedly planned to develop a “global compliance base” on the island. 

This move could possibly create a number of prospective job places for Bermudians. 

While Bermudan banks refuse to offer their services to Blockchain companies, this has largely affected some organizations. As a matter of fact, it appeared hard to stay in business for some of them, thus pushing the companies to move to other countries. 

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