Shows Draft Crypto Regulations, Plans to Boost ICOs
Bermuda Shows Draft Crypto Regulations, Strategies to Embrace ICOs
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The minister of national safety, Wayne Caines, described the proposed regulations that a “landmark legislation for Bermuda,” adding that “The emergence of new financial products and services created through the use of technologies has opened new and exciting opportunities for entrepreneurs and companies.”
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The suggested framework will need that companies facilitating the sale of providing services relating to cryptocurrencies gather and keep key information pertaining to customers, noting the cryptocurrency industry “presents enormous risk which requires robust […] Anti-Money Laundering/Anti-Terrorism Financing (AML/ATF) regulation”
Mr. Caines said “By being among the few nations in the world to specifically govern ICOs, we believe that the proposed regulatory framework will provide legal certainty to companies seeking to conduct ICOs in Bermuda […] Embracing this new world with accountable regulation could result in the attraction of new companies and capital investment into Bermuda, additional government earnings, new profession, employment and training opportunities for Bermudians and also the laying of a foundation for a prosperous future for our next generation of Bermudians.”
The consultation paper defines “virtual money [as] a digital representation of value which can be digitally traded,” adding that “such doesn’t have legal tender status […] in any jurisdiction,” nevertheless, fulfills financial “functions exclusively by agreement within the community of users of the virtual money”
“The company conducting the ICO as well as the inherent digital asset offered for sale; The creation and implementation of any item, service or other job related to this ICO, such as timelines for completion; The goal amount to be increased through the ICO; all, features, functionality and planned transferability of this electronic asset available for sale; The technologies to be used and verification of the capacity of the technical platform to allow the collection, affirmation and storage of purchaser identity information; and compliance and auditing of all ICO transactions.”
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Published at Mon, 16 Apr 2018 00:48:25 +0000
Under the proposed legislation, “a first coin offering will be treated as a restricted business activity that will require consent from the minister of finance” Therefore, ICO issuers will be required to adhere to certain regulations -the “Companies and Limited Liability Company (First Coin Offering) Act — in addition to applying for consent from the finance minister.” Companies applying for permission to conduct a ICO will be required to provide advice about:
On Thursday, Mr. Caines introduced “Bermuda’s fintech plan” into “more than 150 of Bermuda’s key business partners” Mr. Caines said that the government “recognize[s] that there is significant interest in virtual monies and blockchain technology,” emphasizing Bermuda’s urge to “become a worldwide leader in the fintech space”
The Bermuda Monetary Authority has issued a consultation paper on draft regulations pertaining to “virtual money companies” and initial coin supplies (ICOs). The proposed bill attempts to make a framework that promotes and fosters the growth of the nascent cryptocurrency industry of Bermuda.
Whilst the record notes that “The virtual money industry is diverse in business forms,” that the significant participants are explained as being comprised of “ICO issuers,” “virtual money exchange providers and traders,” “custodial pocket providers,” and also “virtual money miners.”
Crypto Sector to be Encouraged Despite Virtual Money Not Heard as Legal Tender