Jason Hayward – Bermuda’s Minister of Economy and Labor – believes the island has the ability to turn into a global center of the cryptocurrency industry. The politician said that the sector should be governed by a comprehensive regulatory framework to ensure investors are protected in the event of events such as the recent collapse at Luna/UST.
Crypto’s Crash is not a Concern to Bermuda
Bermuda’s Minister of Economy and Labor – Jason Hayward – does not see the recent plunge in the cryptocurrency market as an inherently adverse event. In his view, this could even aid the island’s goal to turn into a digital asset hub:
“We are aware of the recent devaluation in the price of cryptocurrencies and remain confident that it does not threaten the island’s ability to become a crypto hub. This industry downturn is likely to advance our goal and positively impact our long-term growth and role in this sector.”
Hayward reminded the audience that Bermuda’s authorities opened up to the cryptocurrency market in 2018 Even during the bear markets of 2018, the government was a strong advocate for the asset class, suggesting that they could continue to support it during this current downturn.
Nonetheless, the Minister opined that establishing proper regulations is urgent due to the collapse of Terra’s native token Luna and its algorithmic stablecoin UST. Such supervision could limit future investors’ losses, he added.
According to David Schwartz – President of the Financial & International Business Association – Bermuda is among the world’s leaders in terms of establishing infrastructure for crypto businesses and imposing appropriate regulations. Local authorities have increased their anti-money laundering controls to ensure that no bitcoin or altcoins are used in illegal transactions.
In 2018, legislation was passed that requires all cryptocurrency businesses in Bermuda to obtain a license from Bermuda Monetary Authority. The island’s top financial watchdog also controls the domestic insurance and reinsurance industry.
The BMA granted 14 crypto firms permission to operate in the local area. Some of the notable enterprises include BlockFi, Circle, and Bittrex.
Crypto Hubs Across the Globe
Portugal and Gibraltar should be mentioned when discussing countries that have a positive attitude to the digital asset sector. Portugal and Gibraltar treat the asset class like a currency, and do not impose VAT on local investors. Most recently, the nation’s authorities dabbled with implementing such a tax but ultimately rejected the proposal.
Another example is Gibraltar (British Overseas Territory). It has a well-regulated cryptocurrency regime that protects businesses dealing with the asset class. This country is also a leader in blockchain adoption.
Not long ago, the leading Chinese crypto exchange – Huobi – revealed its intentions to move its spot-trading operations there.