Bermuda to develop a regulation for cryptocurrency ICO

Management of monetary circulation of Bermuda produced a background paper on the draft regulation concerning the «cryptocurrency companies» and IPOs tokens (ICO). The proposed bill seeks to create a legislative framework that promote and support the development of cryptocurrency industry of Bermuda.

Minister of national security Wayne Caines (Wayne Caines) has described the proposed rules as «entirely new law for Bermuda,» adding that «the emergence of new financial products and services created using this technology has opened new and exciting opportunities for entrepreneurs and businesses.»

Last Thursday, Keynes presented
«FINTECH-the strategy of Bermuda» to the attention of more than 150 key business partners of the island nation. Caines, said that the government «recognizes that there is a significant interest in the virtual currency and blockchain technology» and stressed the desire of Bermuda «to become a world leader in the industry of Finance».

The background paper States that «virtual currency is a digital personification of cost and can share digitally,» and also notes that she «does not have the status of legal tender» in any jurisdiction. The document also States that cryptocurrency functions as money only by agreement within the community of users of the virtual currency.

Among the main participants of the cryptocurrency industry document States issuers ICO, cryptocurrency exchanges and traders, providers of cryptocurrency wallets and crypto currency miners. The proposed regulation requires exchanges and services, enabling cryptocurrency trading, collecting customer data in accordance with the rules of AML/KYC.

Regulation ICO

Under the proposed bill, «the initial placement of tokens will be treated as limited business activity that will require coordination of the Ministry of Finance». Companies wishing to obtain consent for an ICO will be required to provide the following information:

«The companies that ICO and the underlying digital asset offered for sale; the development and implementation of any product, service, or other project that is associated with ICO, including completion date; the target amount that should be collected through ICO; rights, functions, features and expected methods of transmission of digital assets offered for sale; the technology to be used and confirmation of the technical platform for the implementation of Fund-raising, validating and storing information about the identity of the buyer; information on compliance with transaction legal and audit transaction ICO».

In connection with the issuance of the document, Caines said:

«Being one of the few countries in the world that engaged in the regulation of the ICO, we believe that the proposed regulatory framework would provide legal certainty for companies that want to hold ICO in Bermuda. The establishment of smart regulation for this new industry will attract new companies and investment in Bermuda, additional government revenues, the emergence of new career opportunities and jobs for Bermudians and creating the foundations of a prosperous future for the next generation of residents of our state.»

Not many countries today have developed a special regulation to ICO. In February of this year, the Authority for the supervision of financial market authority Switzerland (FINMA) became the first regulator, which is officially issued fairly detailed guidelines on the conduct of the ICO, to determine how the Swiss laws will apply to the ICO. This step, Switzerland became an important precedent for regulators around the world.

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