Bermuda is unswayed by the bear market and ready to become a crypto hub.
- 27% of Bermuda’s economy already comes from international business, so officials believe this gives them a landing pad for a new digital economy.
- Regulations are still being formulated around this global currency, which could potentially be a barrier to its growth in Bermuda.
Many countries the world over are embracing cryptocurrency and wanting to be on the front end of a growing industry. Bermuda is the latest to jump in by establishing a comprehensive cryptocurrency regulation framework. It is one of the few countries that has done this, which could establish it as a frontrunner in the decentralized financial world.
One of the reasons some businesses have been hesitant to offer digital currency as payment for goods thus far is the uncertainty around regulations. By establishing this, Bermuda is setting itself up to become a crypto hub. The country also may be uniquely qualified as such. Its regulators claim that international business accounts for around 27% of the country’s economy. Along with that, it has a local workforce it believes to be competent to handle the influx of business that could follow the new regulatory framework.
Potential hurdles to ‘hub’ status
There may yet be some obstacles in the way of huge economic growth resulting from cryptocurrency. One of these is the massive downturn in the market this year. But from Bermuda’s point of view, that is not a great concern. Jason Hayward, Bermuda’s Minister of Economy and Labor said, “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.”
Bermuda sets itself apart from other countries with lack of red tape
This news also came shortly after President Biden signed an executive order authorizing government agencies to further examine cryptocurrencies and the risks and benefits of them. Bermuda’s lack of red tape and establishment of a regulatory infrastructure could be an alluring combination for blockchain tech companies to find a home. But what could be a hindrance to crypto growth in Bermuda is the lack of education around anti-money-laundering standards needed for a license, as well as bank and insurer hesitation to take on crypto firms as clients. However, the Bermuda Monetary Authority is taking measures to educate service providers in these areas, thereby further equipping its workforce.
If Bermuda continues to create policies that encourage crypto adoption, it may just become a deFi hub as other countries, like the United States, continue to increase regulations against this new wave of technology.
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