Finextra reported on July 2, that Bermuda’s government is planning to make amendments to their Banking Act for them to establish a new class of bank that will cater to the needs of local fintech and blockchain companies.
Since there have been some incidents wherein local banks refuse to provide services for these kinds of business due to potential risks and some regulatory issues, the local government then resulted to planning to make amendments in their banking act to develop it more with creating a new kind of bank for these kind institutions.
The Bermudian Premier and Minister of France, David Burt upon intruding the bill in Parliament said that the banks’ disapproval “cannot be allowed to frustrate the delivery on our promise of economic growth and success for Bermudians.” He also added, “Fintech industry’s success globally depends on the ability of the businesses operation in this space to enjoy the necessary banking services. In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore must resolve it.”
There have been some steps taken by Bermuda to strengthen its position in the blockchain and cryptocurrency space. In fact, a memorandum of understanding (MOU) was signed by the government of Bermuda with Shyft network which will provide $10 million on blockchain technology education and economic development on the island.
Another $15 million MOU was signed be Bermuda and Binance Group in April that will be allocated for cryptocurrency exchange, blockchain, and fintech educational programs. The Binance Group also reportedly plans to create a “global compliance base” in Bermuda which Burt said will make room for 40 new job vacancies and at least 30 of them will go to Bermudians.
It has been difficult for some fintech and blockchain companies because of the banks’ refusal to provide services for them, other companies were forced to move to a more crypto-friendly countries. In Poland there had been a report that the Poland Bitcoin Association filed a complaint against 15 banking institutions that were deliberately denying them of banking services and some selectively closing their accounts.