• Bermuda’s plans to become a crypto hub remains unaffected by the crypto bear market.
• Bermuda’s Minister of Economy and Labor remains bullish on crypto.
• BMA did not disclose the date when they will obtain a complete crypto operation license.

Bermuda is confident in its plans to be a crypto hub, despite the bear market. A comprehensive and extensive crypto regulatory framework is in place.

Bermuda’s Minister of Economy and Labor Jason Hayward recently revealed that the tiny island nation famed for its stunning pink sand beaches and favorable tax rules has been aggressively building its crypto industry since 2017.

Hayward told the Wall Street Journal (WSJ) that the recent drop in the cryptocurrency market is not a hindrance to Bermuda’s aspirations to become a crypto powerhouse. That’s actually good for the island’s purpose.

According to Hayward’s comments to the WSJ:

We are aware of the recent devaluation in the price of cryptocurrencies and remain confident that it does not threaten the island’s ability to become a crypto hub.

Hayward added that the industry’s slump is likely to help them achieve their aim and benefit their long-term development and involvement in this area.

Bermuda’s licensing procedure, according to Hayward, is separated into three stages: a testing license, a modified license, and ultimately a fully authorized operating license. Although the BMA did not specify when it would receive a full license, the testing period could last from three to one year.

So far, the Bermuda Monetary Authority (BMA) has issued 14 licenses for crypto businesses to incorporate out of the British island territory, and four of them authorized in 2022, according to Crag Swan, the BMA’s chief executive.

However, one possible impediment to the expansion of cryptocurrency in Bermuda is the industry’s lack of awareness of the anti-money-laundering regulations necessary for a license. Banks and insurance companies have resisted working with crypto startups.

The BMA has reacted by offering service providers online training to assist them to grasp the regulator’s anti-money laundering objectives. Swan reports that more banks and insurers now accept crypto-startups for customers.

Financial & International Business Association (FATF) president David Schwartz also told the Wall Street Journal (WSJ) that the Bermuda government has made significant progress in its anti-money laundering ethical compliance since early 2020, but there is still a long way to go.

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