While there are many governments and countries that are either cracking down or unsure about the blockchain/cryptocurrency sector, Bermuda has embraced the sector with open arms. Of course, some wonder whether they have embraced it to the point where they are encouraging potential fraudulent activities, given the fact that it is legal for initial coin offerings (ICOs) to operate in the country. Regardless, Velocity Ledger Holdings (VHL) had its ICO approved in the country recently.
Specifically, Bermuda’s Ministry of Finance approved VHL’s public ICO. VHL Financial is currently in the application phase with the Bermuda Monetary Authority (BMA), and the goal is to operate a digital asset exchange in the country after the proper licenses are obtained. The exchange would also involve the trading of asset-based tokens as well as real estate tokens. VL Tech is a separate private blockchain-based trading platform that operates as Software As A Service (SAAS). Those who wish to use the technology will have to own VHL tokens, as well.
Bermuda has been more open to ICOs than almost any other country in the world, and has been competing with Malta to be the world’s blockchain hub. In July 2018, the government made it clear that it was more receptive to ICOs than much of the rest of the world. Many view this as dangerous, considering that there is a significant amount of fraud in the sector, with many teams pulling “exit scams” and disappearing with investors’ money after a successful token sale.
The CEO of VHL, Shawn Sloves, praised the finance ministry’s decision, and also claimed that Bermuda would be rewarded for its attitude towards ICOs, stating: “Bermuda will be a focal point for blockchain initiatives globally.”
Sloves is not the only one who has praised Bermuda for what some consider to be dangerous legislation. In the past, one of the most influential figures in the cryptocurrency world, Binance CEO Changpeng Zhao, has praised how much Bermuda has embraced blockchain technology. He stated that their regulatory agencies are some of the “most approachable on the planet” and also committed to setting up its global compliance center in the country, as well.
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