Since the time digital currencies and assets have come into existence, firms that deal with them, have found it very difficult to get funds from traditional financial institutions as they have been resistant about offering bank services to them. There is one bank, however, which is going against the conventional way and offering banking services to cryptocurrency firms in Bermuda that is a US-based Signature Bank. They are going to offer services to both financial firms as well as cryptocurrency startups that have been struggling to get accounts from traditional banks.
Cryptocurrency industry that has needed financial services has been avoided by banks in Bermuda as reported by Royal Gazette. It has been agreed by Signature Bank that whichever firms are meeting the standards of both Bermuda and Signature Bank will be getting a complete range of financial services as per the report announced by the government.
There was a press release on 27th February where it was announced by the government of Bermuda that fintech companies that have a license would be offered banking services by Signature Bank which would include 66 startup firms that are already incorporated in the nation.
The Vice-Chairman of Signature Bank, John Tamberlane said that they were overwhelmed with the advancement Bermuda had made concerning the regulatory front and looking forward to work to get support from the Government of Bermuda to grow and expand fintech and crypto asset industry in Bermuda. In order to assist cryptocurrency, fintech and blockchain businesses, Bermuda rebuilt their regulatory structure. The Banks and Deposit Companies Act 1999 was revised by the government in July 2018.
It was announced by the Government of Bermuda that services were available and can be applied effectively immediately. To “promote Bermuda as the destination of choice for FinTech companies looking for a place to domicile,” Bermuda’s government was working on it as per stated by Premier David Burt. Further, Burt said that the success of the FinTech industry worldwide would depend on the capability of the business working in this industry so that the required banking services can be enjoyed.
For initial coin offerings in July 2018, a new regulation was proposed by the government which said that the person who issues ICO in Bermuda should issue information in detail regarding the projects which should include ‘all persons involved with the ICO.’ In October 2018, the very first certificate was awarded by the government under the new authorities.