Anxious about the potential risks and the regulatory issues, the local banks of Bermuda had reportedly refused to give financial services to the new kind of corporations. But recently, the government of the island has conferred with the respective institutions and decided to upgrade their policies in the Banking Act. The Government of Bermuda announced their plans to make changes in the Banking Act so that a new class of banks can be established to provide services to local FinTech and blockchain organizations.
Bermuda is already on its way to becoming a crypto friendly nation and took a number of steps to reinforce its blockchain industry. A Memorandum of Understanding was signed between the Government of the British island territory and the Shyft Network during May, which states that the government will provide ten million in dollars for development of blockchain technology education and their economy.
Before that in April, another MOU was signed by Bermudian government and the Binance group (the company behind leading cryptocurrency exchange Binance) for an amount of $15 million to establish bursaries for educational curriculums associated to FinTech and blockchain. Around 40 new jobs will be created by this effort out of which 30 will go to the Bermudians and help Binance reach its goal of developing a ‘global compliance base’ in Bermuda.
During the introduction of the bill in Parliament of Bermuda, the Bermudian Premier and Minister of Finance David Burt said that the banks’ stance cannot be permitted to discourage the delivery on their promise of economic development and prosperity for Bermudians. He further said that the FinTech industry’s triumph internationally depends drastically on the quality of businesses operations in their zone. Thus to enjoy the services, jurisdictions need to be made because banking had been their greatest challenge, hence it should be quickly resolved for the betterment of their nation.
Many companies even moved to other countries for better services and much crypto friendlier surroundings because of the same problems. In Poland, 15 financial organizations have joined hands to issue a formal complaint to the Polish government in the name of Polish Bitcoin Association (PBS) against the denial of services by local banks and ill-treatment.