Under the new regulatory regime, the government of Bermuda awarded the first certification to fintech company Uulala for cryptocurrency and blockchain related activities.
According to the daily newspaper of the country, Royal Gazette the minister of National Security Wayne Gaines – whose office oversees ICT policy and innovation – announced that at the Bermuda Executive Forum in Miami, Bermuda Government had awarded the certification to Uulala for an Initial Coin Offering (ICO).
In July this year, David Burt, the Premier and Minister of Finance of Bermuda, introduced new regulations for ICOs in the lower house of the parliament. According to the new guidelines the ICO issuers have to provide detailed information about all persons who are involved in the ICO project. The issuers have to disclose a review of the project including the key aspects of the product and service like target market audience, financing system, funds which are planned to be raised, technical aspects of the software, and blockchain specifications.
According to the Chief Executive Officer of Uulala, Oskar Garcia Uulala aims to raise $50 million dollars in the token sale. The company has already raised $10 million privately. In the current regulatory environment of the country, it took four months to get approval. Oscar said that
“Bermuda is known as a financial hub, and it is very forward thinking on blockchain and fintech… They have a reputation of being excellent regulatory stewards, and we thought that would be a better fit for us than a jurisdiction where we could say we’re good, they’d believe us and give us approval in three weeks.”
Uulala is a financial solutions platform which provides the access of financial inclusion tools to the underbanked population which they need to change their future. The proprietary micro-credit algorithms and processes of Uulala extrapolate the purchase history and behavioural habits of users to forecast their true financial abilities in a moment by moment basis. Most of these financial activities do not work for a standard credit score. According to the company, the conventional FICO system does not work everywhere in the world. A change is required for global consumers to have access to financial products and services. Uulala tracks all financial activities of the users and combines it with decentralized database technology to check the creditworthiness of a user.
According to the Royal Gazette, Uulala is looking forward to improving the financial inclusion of the unbanked and underbanked people by providing financial services. Uulala has developed a decentralized peer-to-peer network to load cash into the digital economy. Once funds are deposited, the users will get the access of a virtual MasterCard. With the MasterCard, they will be able to participate in the e-commerce, pay bills, and send cross-border payments.
In recent years, Bermuda has developed a blockchain, crypto, and fintech friendly environment. The country is also looking forward to amending Banking Act to establish a new class of financial institutions to render service to local blockchain and fintech organisations. To promote the crypto industry, the government has also signed memorandum of understanding (MoU) with several crypto and blockchain related companies. It will not only support the crypto industry in the country but also create jobs.