Bermuda continues to bet on its crypto framework despite ongoing crypto bloodbath

Bermuda is banking on its digital-assets regulations to attract more cryptocurrency business despite the recent crypto market turmoil as reported by Wall Street Journal on June 3. It is one of the few countries to have done so, and it has the potential to become a leader in the decentralised financial world.

The uncertainty surrounding rules is one of the reasons why some firms have been cautious about accepting digital money as payment for items thus far. By doing so, Bermuda is laying the groundwork to become a crypto powerhouse. It’s also possible that the country is one-of-a-kind in this regard. 

According to its regulators, international trade accounts for roughly 27% of the country’s GDP. It also has a local team that it believes is capable of handling the increase in business that could result from the new legal environment.

There may still be some roadblocks in the way of cryptocurrency’s massive economic expansion. One of these is the market’s dramatic drop this year. However, from Bermuda’s perspective, this is not a major worry.

Jason Hayward, Bermuda’s Minister of Economy and Labor, stated:

“We’re aware of the recent drop in cryptocurrency prices, but we’re convinced that it won’t jeopardise the island’s ability to become a crypto hub… This slowdown in the business is likely to help us achieve our goal and have a beneficial impact on our long-term growth and role in the industry.”

This disclosure comes just days after President Biden signed an executive order directing government departments to investigate cryptocurrencies, including their risks and benefits. Bermuda’s absence of red tape and the construction of a regulatory infrastructure may appeal to blockchain technology startups looking for a home.

However, the lack of knowledge about anti-money-laundering requirements required for a licence, as well as bank and insurance apprehension about taking on crypto firms as clients, could be a barrier to crypto’s growth in Bermuda. The Bermuda Monetary Authority, on the other hand, is taking steps to train service providers in these areas so they can better equip its employees.

As other nations, such as the United States, continue to raise regulations against this new wave of technology, Bermuda might become a deFi hub if it continues to implement policies that support crypto usage.