May 11, 2022, 23:51 pm
As crypto companies face growing scrutiny from policymakers in the US, they are increasingly turning to friendlier and less bureaucratic jurisdictions like Bermuda to grow their businesses and test new products.
The self-governing British territory was one of the first places to establish a regulatory framework for digital assets -- a puzzle that large countries like the US still haven’t solved. The island has the ability to be more nimble because it has a single regulator, compared to the many agencies that have input over crypto oversight in the US.
This, plus the fact that the local officials have embraced the industry, has made it an attractive destination for businesses, especially as countries like the US are ramping up enforcement against crypto firms. The US Securities and Exchange Commission is already probing a number of companies for potentially offering unregistered securities and recently announced plans to beef up a team dedicated to policing digital assets. Lawmakers like Democratic Senators Elizabeth Warren and Sherrod Brown are also eager to rein in the market.
“It’s wonderful to work with one regulator and have that freedom to have an active dialogue in an environment that supports innovation,” Kristin Boggiano, president and co-founder of digital asset exchange CrossTower Inc said of Bermuda. The company is headquartered in New Jersey but has an office on the island.
Boggiano, who spoke to Bloomberg News in an interview, said companies can go to Bermuda to test their products and gather data that they can then bring back to US regulators when they’re ready.
“If you think about the US where you might have state, multiple federal agencies, it’s a slower process to get through,” said David Hart, the chief executive officer of the Bermuda Business Development Agency. “We do find companies very attracted to what the BMA and the support of the broader government leadership brings to the table,” he said, referring to the Bermuda Monetary Authority.
The BMA has a “sandbox” program that allows businesses to work alongside regulators to try out new technologies or business models in a controlled environment for a certain stretch of time. Companies start with a test license and can eventually graduate to a full license if the idea is successful. There are currently 14 companies with a range of licenses from that program, including four with test licenses, said Jason Hayward, Bermuda’s minister of economy and labor.
“We allow companies to operate in our ecosystem and for the most part that has been rewarding for persons to build on and grow their concepts into an actual full business that is operating globally.”
https://finance.yahoo.com/news/crypto-co...55880.html
The self-governing British territory was one of the first places to establish a regulatory framework for digital assets -- a puzzle that large countries like the US still haven’t solved. The island has the ability to be more nimble because it has a single regulator, compared to the many agencies that have input over crypto oversight in the US.
This, plus the fact that the local officials have embraced the industry, has made it an attractive destination for businesses, especially as countries like the US are ramping up enforcement against crypto firms. The US Securities and Exchange Commission is already probing a number of companies for potentially offering unregistered securities and recently announced plans to beef up a team dedicated to policing digital assets. Lawmakers like Democratic Senators Elizabeth Warren and Sherrod Brown are also eager to rein in the market.
“It’s wonderful to work with one regulator and have that freedom to have an active dialogue in an environment that supports innovation,” Kristin Boggiano, president and co-founder of digital asset exchange CrossTower Inc said of Bermuda. The company is headquartered in New Jersey but has an office on the island.
Boggiano, who spoke to Bloomberg News in an interview, said companies can go to Bermuda to test their products and gather data that they can then bring back to US regulators when they’re ready.
“If you think about the US where you might have state, multiple federal agencies, it’s a slower process to get through,” said David Hart, the chief executive officer of the Bermuda Business Development Agency. “We do find companies very attracted to what the BMA and the support of the broader government leadership brings to the table,” he said, referring to the Bermuda Monetary Authority.
The BMA has a “sandbox” program that allows businesses to work alongside regulators to try out new technologies or business models in a controlled environment for a certain stretch of time. Companies start with a test license and can eventually graduate to a full license if the idea is successful. There are currently 14 companies with a range of licenses from that program, including four with test licenses, said Jason Hayward, Bermuda’s minister of economy and labor.
“We allow companies to operate in our ecosystem and for the most part that has been rewarding for persons to build on and grow their concepts into an actual full business that is operating globally.”
https://finance.yahoo.com/news/crypto-co...55880.html