Crypto companies are increasingly turning away from the US in search of clearer digital asset regulations, and some leading companies are finding a home in Bermuda, Still, some experts warn that this may be a short-term solution as issues in the land of the free are not being fixed.
One of the biggest crypto companies recently revealed its Bermuda branch. in April, coinbase announced that it is licensed under the Digital Asset Business Act Bermuda Monetary Authority (BMA) said that,
“Bermuda was one of the first financial centers to pass comprehensive digital asset regulation […] And its regulatory environment has long been known for a high degree of rigor, transparency, compliance and cooperation.”
It said it chose Bermuda because the BMA is “a highly respected and experienced financial regulator” with close ties to other regulatory agencies globally.
“What Coinbase recognized, which a lot of other companies have recognized, is that we have a better regulatory environment,” Bermuda Premier E. David Burt said at Consensus 2023 in Texas, USA. informed of By CoinDesk.
“This, as I have said, is a race to the top for regulation, and Bermuda has proved that we are a place where you can do that.”
Notably, Coinbase’s move comes at a time when it is facing a legal battle with the US Securities and Exchange Commission ,seconds), which in March serviced Exchange with a so-called Wells notice, which usually precedes enforcement action.
In late April, Coinbase announced That he filed a lawsuit against the SEC to seek clarity.
ANC Coinbase may affect other companies. Bermuda “will definitely be a hotspot for businesses that choose to relocate. And they can dip their toe in the water like Coinbase,” said Phil Berg, head of the corporate department. otterberg law firm, as The Block informed of,
America’s ‘punishment’ made other places attractive
Bermuda enacted the Digital Asset Business Act in 2018 as a statutory basis for regulating digital asset businesses. It established rules for issuing, selling and redeeming digital assets as well as operating exchange and payment service provider businesses using digital assets, BMA where did it go,
In addition to Coinbase, Bermuda grants license to USDC issuer circleas well as block and its subsidiary cash app,
“It is kind of ironic that we are praising all these elaborate regulations when the whole concept of crypto was initially decentralized and had no trusted institutions,” Berg was quoted as saying.
“But because of the punishment we have taken on regulators in the US for their refusal to regulate and make rules through enforcement and their inability to pass laws, it has really made it attractive to be a jurisdiction with some regulatory clarity. “
bitstamp USA Chief Compliance Officer Thomas Hook, however, told The Block that locations such as Bermuda and the Bahamas could be an attractive short-term solution in responding to regulatory issues.
But, he warned,
“While offshore licensing has commercial benefits from a global perspective, it is not a long-term solution for serving customers in the US. If you want to serve the US market, you need to work with US regulators.”
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learn more:
, Governments will ‘need to answer’ for this crypto wonder by Bermuda
, Crypto Lending Crisis – Gemini and Genesis Are Accused of Selling Unregistered Securities by the US SEC
, Former Legislator Joins Coinbase’s New Global Advisory Council
, Binance Criticizes US Crypto Regulations, Eyes UK for Better Oversight
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