Regulators are expected to weed out crooked operators who try to be part of the island’s fintech industry, the Senate heard yesterday.

James Jardine said he was “comforted” by the Bermuda Monetary Authority’s role in drawing up rules to govern the business.

Mr Jardine was speaking as senators passed legislation for a new type of banking licence designed to cater to the fintech industry.

Mr Jardine, an independent member, said the sector was not without risks.

But he added: “What gives me some degree of comfort is of course the involvement of the BMA.

“I don’t think they realise how much everybody is relying on them to winkle out any would-be scam artists or others who think this is an opportunity to make some easy money.”

Amendments to the Banks and Deposit Companies Act 1999 mean a restricted licence for banking will allow fintech companies access to a Bermuda account and the chance to be part of the island economy.

Vance Campbell, of the Progressive Labour Party, said the island’s four banks had so far been unwilling to offer services to new fintech and distributed ledger technology companies.

He was asked if any banks had been identified that will take advantage of the amended law.

Mr Campbell said: “While we know that there are banks globally that do provide banking services for the fintech industry we have not identified a specific bank here.

“Once this legislation has passed then interested parties will go through a process of licensing and from that process we will have the banking services for this industry.”

He added: “I too would like to thank the BMA industry partners for the countless hours of work they have put in on the fintech-related legislation.

“I can’t imagine the sacrifice that they are making, that their families are making and I would like to thank them publicly for that.”