The Government of Bermuda is to alter the Banking Act to construct a new class of Banks especially to cater to neighborhood fintech and blockchain companies. The British island province is requesting to put its name on the map as an outlier target for fintech innovation, having lately passed an ICO Bill and Digital Asset Business Act to draw firms in the blockchain and virtual currency domain.
Since local Banks have supposedly declined to offer banking services to the new type of firms, being apprehensive about regulatory challenges and potential risks, the government of the island has checked withed with them to extend a revision to the Banking Act.
Bermuda has previously taken a number of steps to reinforce its blockchain and crypto-friendly position. In May, the Government of the British island land signed a memorandum of accepting (MOU) with Shyft network, which will apparently give $10 million on blockchain technology teaching and economic growth.
The forthcoming revision to the Banking Act follows terse consultations with local Banks, which have been reluctant to afford banking services to the new class of firms converging on the island, citing regulatory barriers and an aversion to risk, Coin Telegraph reported. Introducing the Bill in Parliament, Bermuda premier and minister of finance, David Burt, says the caginess of Banks cannot be permitted to aggravate the delivery on our undertaking of economic intensification for Bermudians
The fintech industry’s success globally depends on the aptitude of the businesses working in this space to enjoy the necessary banking services. It is evenly so and therefore it must be resolved. Banks refusal to present services to crypto exchanges and blockchain firms has made it intricate for some establishments to stay in business and has encouraged others to move to countries with more responsive regulatory systems.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]