New regulations on Initial Coin Offering [ICO] were introduced by David Burt, the Premier and Minister of Finance of Bermuda. This announcement was made on 13th July, at the House of Assembly.
The regulatory framework specifies the minimum information all ICO projects need to provide before launching. It also establishes compliance measures that companies need to undertake in order to conduct an ICO.
Burt elaborated upon these regulations while addressing the lower house of the Bermudian Parliament. Issuers are now required to disclose a project review that entails details regarding:
- The product or service
- The market audience
- The financing system
- The amount of money that needs to be raised
- Other technical details that are linked to software and blockchain specifications.
Burt stated that these regulations are being specified on account of expanding existing laws against ‘money laundering’ and ‘terrorism financing’. He also announced that a new set of bills will be proposed before the end of summer. Burt spoke about Bermuda developing a legal environment that actively addresses the legal matters that have been affecting the FinTech and blockchain industries.
This move of passing the Digital Asset Business Act comes in response to the market demand that points to developing a legal framework for firms dealing with distributed ledger technology [DLT].
The new regulations not only specify boundaries for businesses in the blockchain and cryptocurrency industries but also protects existing and potential clients and their rights.
The government of Bermuda had announced plans of releasing amendments to the Banking Act earlier this month. This was aimed at establishing a new class of bank that would provide services to blockchain as well as local FinTech organizations. This was a result of local banks refusing to offer these services to blockchain companies.
David Burt, earlier this year, signed a Memorandum of Understanding [MoU] with the Binance Group. The MoU deals with establishing funding for educational platforms that are related to FinTech and blockchain startups. Burt was joined by Changpeng Zhao, the CEO of Binance, in signing the MoU.
Burt spoke about Binance’s aim of developing a “global compliance base” in Bermuda. This move will pave the path for 40 new jobs, 30 of which will go to the citizens of Bermuda. Burt, in addressing this move by Binance, said:
“[Binance’s goals] align with our aims and objectives to provide a leading well-regulated jurisdiction ideally suited to the growth of the finch industry.”
The MoU states that the Binance Foundation will spend up to $10 million in training Bermudians in blockchain technology development. The foundation will also be investing up to $5 million in companies that function on Bermuda-based blockchains.
Zhao addressed this saying,
“We think the Bermuda Government and [their] regulatory body are one of the most approachable, most reasonable and most forward-thinking bodies on the planet.”
Burt added,
“We want to ensure that Bermuda is the world’s number-one place for regulation inside of this space. We have a reputation to protect, we will protect it, but at this point in time we will work will all persons who we believe represent future growth for the people of this country and future opportunities and jobs.”
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Source: AMBcrypto
Original Post: New ICO regulations introduced by Bermudian Minister of Finance
