Bermuda Remains Positive On Becoming A Crypto Hub Despite Bear Market

Crypto’s current downtrend could support Bermuda’s goal to become a global hub of the digital asset sector, says Jason Hayward, the Minister of Economy and Labor.

According to Jason Hayward, the Minister of Economy and Labor of Bermuda, the island nation could turn into a global center of the crypto industry. However, the sector should have a comprehensive regulatory framework, providing the investors more protection in events like the recent dramatic collapse of Luna/UST, he said.

Hayward doesn’t see the recent plunge in the cryptocurrency market as showstopper for Bermuda’s plans for becoming a crypto hub. In fact, this could even be helpful the island’s goal. He said:

“We are aware of the recent devaluation in the price of cryptocurrencies and remain confident that it does not threaten the island’s ability to become a crypto hub. This industry downturn is likely to advance our goal and positively impact our long-term growth and role in this sector.”

Bermuda started opening up to the cryptocurrency space during the bear market in 2018. The government stood as an advocate of the asset class, hinting that this support could preserve during the current decline.

Hayward believes that establishing proper regulations is urgent due to the collapse of Terra’s native token Luna and its algorithmic stablecoin UST. He added that such supervision could limit future investors’ losses.

David Schwartz, the President of the Financial & International Business Association, said that Bermuda is among the world’s leaders in terms of establishing infrastructure for crypto businesses and imposing appropriate regulations. The local authorities have also tightened the anti-money laundering (AML) controls, are keep a close eye on whether cryptocurrencies are used in illicit transactions.

According to 2018 legislation all cryptocurrency companies in Bermuda must be licensed by the Bermuda Monetary Authority (BMA). The island’s financial regulator also controls the domestic insurance and reinsurance industry.

Currently 14 crypto firms to operate on Bermuda, including Circle, BlockFi, and Bittrex.