New York forum highlights Bermuda business
The “regulatory sandbox” used by Bermuda’s financial services supervisors is proving to be a hit in the fintech industry.
There are currently 14 companies with such licenses, including four with test licenses, according to Jason Hayward, the Minister of Economy and Labour.
Mr Hayward was with a Bermuda delegation as part of the island’s outreach to the global business community – the Bermuda Business Development Agency’s New York City executive forum on Wednesday at One Liberty Plaza.
He was quoted by Bloomberg: “We allow companies to operate in our ecosystem and for the most part that has been rewarding for persons to build on and grow their concepts into an actual full business that is operating globally.”
The island’s single regulator makes it more nimble, as opposed to the US where a number of regulatory bodies are involved, the article said.
In addition, Bermuda officials have embraced the industry as the US and other countries are ramping up enforcement against crypto firms.
David Hart, Bermuda Business Development Agency CEO, said: “We do find companies very attracted to what the Bermuda Monetary Authority and the support of the broader government leadership brings to the table.”
The BMA established the “sandbox” to allow businesses to try out new technologies or business models in a controlled environment.
It allows the companies to begin with a test license to prove the concept, before graduating to a full license, should the idea prove to be successful.
It is one reason Bermuda is touted as a “friendlier and less bureaucratic” jurisdiction for crypto companies to grow their businesses and test new products, when compared with the growing scrutiny from policymakers in the US, the article noted.
There was support from Kristin Boggiano, president and co-founder of digital asset exchange CrossTower Inc, which is headquartered in New Jersey but has an office on the island.
She said: “It’s wonderful to work with one regulator and have that freedom to have an active dialogue in an environment that supports innovation.”
She was impressed that companies were able to test products and gather data that they can then take back to US regulators.
Bermuda was one of the first places to establish a regulatory framework for digital assets “a puzzle that large countries like the US still haven’t solved”, the article pointed out.
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