Signature Bank, a commercial bank based in New York is planning to offer banking services to businesses in Bermuda’s fintech industry.
As reported by The Royal Gazette, the bank has agreed to provide a full range of banking services to crypto and fintech startups, as well as already existing 66 businesses in the industry. However, these companies will have to meet certain standards set by Bermuda and the Signature Bank.
While commentating on the issue, John Tamberlane, the Vice-Chairman of Signature Bank said, “We are happy with the progress Bermuda has made to date on a regulatory front. We are look forward to working with the Government of Bermuda to help promote growth and expansion of the fintech and digital asset industry in that country.”
This comes as good news to many businesses that have to face constraints while trying to access banking services from local banks. Despite efforts by the government to create a friendly ecosystem for crypto-related companies, local banks have remained adamant in providing services to crypto related business. The government has gone as far as to make regulatory changes in an attempt to solve this problem.
The Premier of Bermuda, David Burt who last year promised to do everything possible to ensure that the banking problem, praised Signature’s move. He stated:
“Banking for the FinTech sector has been a considerable challenge around the globe. Banks have been reluctant to take on the risks of dealing with digital assets for fear that they may fall foul of global compliance regulations. Signature Bank’s willingness to consider Bermuda licensed businesses for banking services is a significant vote of confidence in an endorsement of Bermuda’s efforts to create a leading high standard regulatory regime for FinTech business.”
In addition to changing a few regulations, the government of Bermuda also proposed new regulations for initial coin offerings (ICOs). Reportedly, the proposed regulations state that the ICO issuers will be required to provide detailed information about the project including “all persons involved in the project.”
Last year, the bank got approval from the New York Department of Financial Services (NYDFS) to operate its new system, Signet. This system allows corporate customers to make bank payments in the form of virtual currency.
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