On July 13th, new ICO regulations were introduced by David Bart, the Premier and Minister of Finance of Bermuda at the House of Assembly.
The new framework prescribes the minimum information an ICO project needs to provide before launching and establishes measures that a company needs to undertake to conduct an ICO.
For now, issuers are required to disclose a project review elaborating the following:
- The product or service
- The market audience
- The financing system
- The amount of money that needs to be raised
- Other technical details that are linked to software and blockchain specifications.
The minister stated that the regulations are being specified to expand existing laws against “money laundering” and “terrorism financing”. He also announced that a new set of bills will be brought forward before the end of summer. Burt spoke about the country preparing to address legal issues concerning the FinTech and Blockchain industries.
The regulatory framework not only specifies the limits for business in blockchain and cryptocurrency but also safeguards existing and potential users and their rights.
The government had earlier announced plans of releasing modifications to the Banking Act, targeted at a new class of bank that would serve the blockchain and local FinTech companies. The decision has been a consequence of the local banks denying to offer services to such organisations.
The finance minister was joined by Changpeng Zhao, the CEO of Binance, to sign a Memorandum of Understanding (MoU), earlier this year. The MoU would help in channelising funds for education platform ancillary to the blockchain and FinTech startups.
The minister spoke about Binance’s vision of developing a “global compliance base” in the country, paving the way for about 40 new jobs, especially for the citizens.
The MoU states that the Binance Foundation will spend up to $10 million in training the citizens in Blockchain technology and up to $5 million in companies that function on Bermuda-based blockchains.
“We want to ensure that Bermuda is the world’s number-one place for regulation inside of this space. We have a reputation to protect, we will protect it, but at this point in time we will work with all persons who we believe represent future growth for the people of this country and future opportunities and jobs,” said Burt.