Bermuda Opens Door For Crypto To Flourish Despite Recent Crash

Bermuda’s Minister of Economy and Labor, Jason Hayward, believes that the Island can attract global cryptocurrency companies and investors. He stated that Bermuda can become a global hub for the cryptocurrency industry as it plans to offer a comprehensive regulatory framework.

According to Hayward, proper regulation will offer protection against any market failures like the recent collapse of LUNA/TerraUSD.

Crypto’s Crash Not An Issue For Bermuda

The minister reiterated that the recent crash of cryptocurrencies is not a cause of concern for Bermuda, as it will not have any adverse effect on the island’s plans. According to him, the crash could even be advantageous for its goal of becoming a digital asset hub.

This industry downturn is likely to advance our goal and positively impact our long-term growth and role in this sector,” Hayward stated.

He noted that the Bermuda authorities started welcoming activities in the cryptocurrency industry in 2019. According to him, the government has been a promoter of digital assets even before then, when the market was at its bear level in 2018. He hinted that the support will continue despite the recent decline in the crypto market.

Bermuda Plans To Set Up A Comprehensive Crypto Regulation

The Bermuda government is planning to establish a comprehensive regulatory framework to offer protection in times of massive volatility. According to Hayward, the regulation is necessary as a way of offering protection, considering what happened to the Terra native token LUNA and its stablecoin UST. The introduction of a proper regulatory framework will prevent future investors from losses, he noted.

President of the Financial & International Business Association, David Schwartz, stated that Bermuda is among the world’s leaders when it comes to setting up infrastructure for crypto businesses and establishing proper regulation for the industry. Additionally, authorities on the island have strengthened their anti-money laundering monitoring and controls. He noted that rules have been put in place to watch whether Bitcoin or other crypto assets are being used for fraudulent or illegal transactions.

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