Bermuda ‘sandbox’ welcomes blockchain and cryptocurrencies next

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Bermuda is establishing itself as a blockchain-friendly territory.

Blockchain companies can now add Bermuda to their top choices for setting up shop.

Last month, the self-governing British overseas territory released a paper on their insurance regulatory sandbox and innovation hub, where insurance entities can test out their products and services in a controlled environment for a limited amount of time.

And now, this sandbox is extending to blockchain companies. David Burt, the Premier of Bermuda has issued some very enticing statements for interested start-ups.

“What I would l would like to look at is Bermuda—we have innovation hubs around the world. I look at my entire country as an innovation hub,” Burt said.

“We are the ideal place for companies that are looking to test out new age products and services—to have them in a constrained environment to see how they can work and then they can scale them up to service the rest of the world. That’s where we’re positioning Bermuda,” he added.

In terms of risks associated with cryptocurrencies, Burt isn’t at all worried. In an interview with Bloomberg, the Premier expressed that he is confident that their regulators can keep things under control.

“Well, for privacy, Bermuda’s not the place to go as we are a very well-regulated jurisdiction. And what we like to say is Bermuda’s an excellent place to raise capital, but a very bad place to hide it. We have an excellent regulator and we have access to the US markets. There’s only two countries that have regulatory equivalence in the EU and the United States—that is Switzerland and Bermuda. So we stand above the other international financial centers and we will continue to innovate as we are doing in the blockchain space.”

Burt added that Bermuda will retain the high standards that they have always upheld to ensure that anti-money laundering mechanisms are enforced.

The territory also aims to create a friendly atmosphere not only for blockchain technology but for cryptocurrencies as well—something other countries hold reservations about. Last month, National Security Minister Wayne Caines proposing a set of rules to allow and regulate initial coin offerings (ICOs), making them one of the first in the world to do so.

“It is generally accepted that ICOs are, in most cases, a method of crowdfunding projects or services. However, ICOs may also be used to convey some interest in or right to access or use a physical asset,” Caines said.

“Embracing this new world with responsible regulation could lead to the attraction of new companies and capital investment to Bermuda, additional government revenues, new career, employment and training opportunities for Bermudians and the laying of a foundation for a prosperous future for our next generation of Bermudians.”

Premier Burt believes that Bermuda’s firm yet reasonable grasp of regulations makes them a viable choice for businesses.

“We’ve demonstrated that Bermuda is open for business and we’ll continue to spread the message that Bermuda is the ideal place for future economic growth. The island is a place for stable regulation and legislative clarity around these new industries, and we intend on leveraging our legacy of blue-chip innovation to solve new problems in financial markets and digital assets,” Burt said.