The dramatic collapse of cryptocurrency exchange FTX in November 2022 has not moved Bermuda away from accommodating cryptocurrency companies, the head of the government of the British Islands said in an interview with Bloomberg News.
“The future of finance is digital,” said Bermuda Premier and Minister of Finance Edward Burt, who believes that digital assets and blockchain technology still have considerable benefits. Bermuda, a self-governing territory with a parliamentary government, was one of the first places to implement a regulatory framework for digital assets. The territory is just 915 miles from the Bahamas, where the now-bankrupt FTX once operated.
Burt reportedly faced intense political pressure before FTX collapsed after the exchange chose the Bahamas instead of Bermuda as its headquarters. According to him, the latest events in the crypto industry have had minimal impact on the region due to its regulations. "I think the approach is proven," Burt said, adding that Bermuda's regulations are clear and won't change for any company.
According to Bloomberg, Burt met with U.S. lawmakers and government officials in Washington this week to discuss common standards for digital assets, as well as topics related to his financial and insurance industries. He argued that global regulators "have to work together" to provide clarity to emerging technologies.
Since 2022, the Bermuda government has been advancing its ambitious plans to become a cryptocurrency hub. Known for its natural beauty and attractive tax policies, the island has been actively expanding its cryptocurrency industry since 2017, Cointelegraph reported. According to Burt, there are currently 17 licensed cryptocurrency companies operating in Bermuda. The latest cryptocurrency developments in the region include Jewel Bank’s launch of Bermuda’s first stablecoin in December 2022. Powered by the Polygon blockchain, the stablecoin focuses on real-time settlement using stablecoins pegged 1:1 to the U.S. dollar.
