BERMUDA PROPOSES A LAW ON REGULATION OF ELECTRONIC CURRENCIES

David Burt, the Prime Minister of Bermuda and also the Minister of Finance, presented a review of the draft law on ICO regulation on the island in the Parliament. 

ICO provides several alternatives to traditional financing for companies working in the financial sector. They can be engaged in commercial lending/crediting, venture capital investments and initial public offerings.

In the draft law, the Government of Bermuda proposes to consider ICO as a limited entrepreneurial activity, and it is necessary to obtain particular consent or permission of the Ministry of Finance for conducting above activity. It is required to provide information about ICO operator for obtaining the permission, stipulate basic characteristics of the underlying digital assets that are offered through ICO, and specify the target amount of contributions. Also, information should be provided on options for collecting and storing customer data, as well as for methods of tracking and verifying ICO transactions.

The law will also provide for minimum disclosure standards for all ICOs, including information on an issuing company and a digital asset that is offered for sale.

David Burt also added that the newly introduced law would not stop or limit validity of existing regulatory acts, in particular, the law regulating activities with securities in Bermuda.

The Prime Minister of Bermuda recognized that the Government of Bermuda is puzzled by questions about digital assets due to the risks came laden with cryptocurrencies, and the authorities of many countries are constantly accentuating the foregoing today. But David Burt also stressed that, given the rapid development of the industry, the island would not miss the opportunity to use this new technology for attracting new companies and investments. Above will positively affect the state's revenues and provide new opportunities for training, employment and career growth of citizens of Bermuda.