As the Blockchain technology keeps growing and the market for cryptocurrency keeps expanding, lots of small territories and microstates like bermuda are planning to attract Blockchain companies by making the technology regulatory in their territories. Bermuda is the latest in a long list of such states that have attracted Blockchain business with the promise of “comprehensive Blockchain legislation.”
Bermuda’s government has launched a Blockchain task force in conjunction with the Bermuda Business Development Agency (BDA) in late 2017. They have, ever since, passed legislation on initial coin offerings (ICOs) and created a regulatory sandbox for those companies. They have also put forward a Digital Asset Business Act and tied up with BitFury, a popular Blockchain Trust Accelerator, to transfer and revamp the island’s property deeds system to the Blockchain.
However, the news that is currently making headlines is the territory’s $15 million investment agreement with major crypto exchange Binance. This effectively demonstrates that the small island’s Blockchain initiative is attracting actual industry heavyweights.
Premier David Burt has gone on record and said “We have a very simple mantra in my government, and it’s ‘show, don’t tell’.” The island has further escalated their Blockchain endeavor by going beyond regulation, and incorporating its blockchain aspirations into its own public policy agenda – including re-envisioning its youth education and immigration policies.
Another method by which the government plans to keep pace with the Blockchain industry is by keeping communication lines open with the real industry players, and making sure to consider the interests of the island’s citizens
For instance, the memorandum of understanding between Bermuda and Binance states that the crypto exchange will not only locate its compliance center to the island, but also pour a $10 million investment into Blockchain-related educational programs and $5 million in Blockchain startups over the course of two to three years.
In return for this, Bermuda will work to provide a steady talent pool for the company from amongst the locals. Burt was quoted saying “We want to do it because we want those players and others to come into the market and create economic activity.”