Bermuda to Introduce ICO-Friendly Regulations

According to the remarks from David Burt, the premier of the British Overseas Territory, Bermuda considers to make a step towards establishing ICO legislation on the island. As Bermuda to introduce ICO-Friendly regulations, when can we expect the rules to come into effect?

21 March, AtoZForex Bermuda’s officials are considering the move towards the ICO-friendly regulations in the country, according to the premier of the British Overseas Territory, David Burt.

Bermuda to Introduce ICO-Friendly Regulations

David Burt is also serving as a minister of finance. He has laid out an outlook of a draft bill to the parliament’s House of Assembly, noting that legislators will take a “measured approach” to cryptocurrency regulation. He aims to make the island “a global leader in the fintech space.” He has been quoted as saying:

“Bermuda has an opportunity to become a global leader in the Fintech space by being one of the first countries in the world to specifically regulate ICOs. The proposed regulatory framework will provide legal certainty to companies looking to conduct ICOs in Bermuda.”

The proposed framework would classify ICOs as “restricted business activities.” It would also require ICO issuers to obtain consent from the minister of finance ahead of the start of operations. Mr. Burt further stated that the application process would need the disclosure of company’s information, the digital asset and the “the rights of the purchaser to assist the public in making informed decisions about participating in any proposed ICO.”

Legal and Regulatory Working Group

The minister of national security of Bermuda, Wayne Caines, will be leading this legislative initiative. The government has also created a Legal and Regulatory Working Group, which comprises MP Michael Scott, officials from the Ministry of Economic Development and Tourism and the Ministry of Finance, and individuals from legal institutions and private banking sector.

Bermuda’s ICO legislation will not appear as a new regulatory framework, according to the premier. Instead, it will come as changes to the Companies Act 1981 and the Limited Liability Company Act 2016. In the same manner, other existing legislation will remain valid for the ICOs where appropriate.

As of now, the government is also discussing the additional legislation in regards to the digital asset companies with the Bermudan Monetary Authority. The Bermudan ICO legislation draft bill is expected to be out soon, while after the consultation period, it will be passed to parliament for review “at the earliest opportunity.”

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