Bermuda Seeks Public Feedback on KYC/AML Rules for Crypto Businesses

The Bermuda Monetary Authority (BMA) is seeking the feedback of the island’s citizens on an anti-money laundering law that is aimed at organizing its local cryptocurrency industry.

This comes as a part of the aggressive plan of the government of Bermuda, a British overseas territory in the North Atlantic ocean, to attract the cryptocurrency businesses from all over the world to the island.

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A 150-page long consultation paper titled ‘Regulation of Virtual Currency Businesses’  published by the BMA, the island’s financial services regulator, defined cryptocurrency as “a digital representation of value that can be digitally traded and functions as a medium of exchange; and/or a unit of account; and/or a store of value, but does not have legal tender status (i.e., when tendered to a creditor, is a valid and legal offer of payment) in any jurisdiction”.

The suggested cryptocurrency act would mandate the cryptocurrency exchanges, wallet services, and payment providers to collect and retain customer information to check any illegal activities. Moreover, businesses that promote and facilitate initial coin offerings, would also fall under the rule.

Interest of entrepreneurs

Bermuda’s friendly approach towards the controversial industry has made it one of the popular jurisdictions to set up a cryptocurrency business. According to a recent report by the Royal Gazette, the territory’s Minister of National Security, Wayne Caines, has recently hosted an event to give a clear picture of the government’s approach with the regulations on the nascent sector.

Caines said: “We can’t keep up with the amount of people who want to come to Bermuda. We’re going to London at the weekend and we have 20 companies lined up to meet us. It’s actually phenomenal.”

Tax heavens’ approach towards crypto

Bermuda is not the only jurisdiction to target blockchain firms by imposing regulatory rules on them. Similar steps were taken by territories like Gibraltar and Malta to lure in crypto firms and in each case, this approach was a massive success, as recently we saw an influx of blockchain businesses to Malta.