The government of Bermuda is drafting a bill to formally introduce initial coin offering (ICO) regulations, a move that will legalize ICO campaigns. The British territory’s premier and finance minister David Burt said he hopes the move will draw more fintech businesses to the region.
Subscribe to the Bitsonline YouTube channel for more great interviews featuring industry insiders & experts
Bermuda to Be an Example for Other Nations
In presenting the draft bill, Burt highlighted that Bermuda has a chance to set an example for other countries in regulating ICOs. He stated:
“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 ICO laws are amendments to the Companies Act 1981 and the Limited Liability Company Act 2016. The proposed legislative amendments aim to develop a regulatory framework for ICOs. Under the draft bill, ICOs will be classed as “restricted business activities”. Even with the legislative amendments, ICOs will have to comply with existing regulations such as the territory’s Securities laws.
Prior to launching an ICO, the token issuer will have to acquire assent from the Minister of Finance. The application should also fulfill minimum requirements that include “mandatory disclosures of certain information related to the company, the digital asset being offered for sale, and the rights of the purchaser to assist the public in making informed decisions about participating in any proposed ICO.”
Crypto Businesses Will Migrate to ICO Friendly Nations
Burt – Bermuda’s youngest-ever premier, said that the government’s Legal and Regulatory Working Group, formed in November last year as part of the Blockchain Task Force, will be responsible for developing a legal framework to regulate fintech products and services, such as ICOs.
The initiative is led by the minister of national security, Wayne Caines. The Legal and Regulatory Working Group also includes MP and former Attorney-General Michael Scott, executives from the Ministry of Economic Development and Tourism, and Ministry of Finance. It also consists of officials from the Bermuda Monetary Authority and the Bermuda Business Development Agency.
The lawmakers are to take a “measured approach”, that would regulate the promotion, sale, and distribution of ICOs.
The initiative to regulate ICOs hopes to draw talent and capital from around the world to the British Overseas Territory. The migration of crypto businesses would not only be a revenue source, but also offer employment opportunities. Moreover, ICO regulations could also improve the negative image of ICOs in the eyes of “traditional” investors.
Will Bermuda be able to attract ICO businesses? Let us know your views in the comments section.
Images via Pixabay