Owing to the large-scale base of various companies in Bermuda, Gibraltar and Malta, the crypto-firms too, are ready to seek a roof for themselves.
As reported by the officials, a number of small territories and countries including Bermuda, Malta, Gibraltar and Liechtenstein, are prepared to relax their regulations and show hospitality to various crypto-projects.
To enumerate, the Maltese government, on July 4 adopted three laws which would ease the issue of new crypto-coins and also, the trade of old ones. Earlier this year, Bermuda rolled out a legislation to facilitate speedy approval by applying directly to the finance minister.
- David Burt, the Premier of Bermuda, mentioned in a conference, relating to cryptocurrency held in New York this May, “We are 65,000 people and 20 square miles, but we have a very advanced economy. We want to position Bermuda as the incubator for this industry.”
Accompanied with possibilities of profitability, cryptocurrencies are averse to a number of risks. A number of crypto-scams have been reported in the past few months and the toll has only been rising. The scams are a result of the blockchain technology being the building block of digital tokens. In other words, the crypto-transactions are not subject to any government regulations or financial institutions.
The head of USSEC, Jay Clayton states that the companies at large, have illegitimately sold the digital coins and earned their profits. However, The United States Securities and Exchange Commission has not drawn a line between what crypto-activities it considers to be legal and what not.
All of this has led the crypto companies to find a shelter away from the regulatory uncertainties prevailing in these regions and rush towards the smaller countries which offer a crypto-friendly environment.
Bermuda plays a major role in attracting cryptocurrency firms to contribute to their economy. Apart from facilitating speedy approvals, the country has opened the gates for cryptocurrency exchange platforms and related services. This has caught the attention of Will McDonough, the founder of a new cryptocurrency called iCash.
Citing McDonough, “The largest issue blockchain companies have is not knowing how they’ll be governed or regulated. Those markets that have made the rules clear have found many companies coming to play by the rules.”
Also, Gibraltar is about to start the voting procedures which would lead to the regulation of cryptocurrency transactions and allow the firms to issue and trade digital coins. More than 35 ventures have already approached the government for getting their licenses sanctioned to carry out operations as blockchain businesses.
The Alpine nation, Liechtenstein, is also competing against the above-mentioned nations to attract the crypto-projects. The Prime Minister has also enforced a Blockchain Act which would furnish the companies with the rights to deal in cryptocurrencies.