Bermuda will introduce a new type of banks to encourage the growth of blockchain and FinTech industries. Premier and Minister of Finance Edward David Burt announced plans to revise the Banks and Deposits Companies Act 1999 to better accommodate the growing tech industries.
“FinTech industry needs an innovative, robust banking solution,” said Burt in a ministerial statement to the House of Assembly. “[T]he FinTech industry’s success globally depends on the ability of the businesses operating in this space to enjoy necessary banking services. In other jurisdictions, banking has been the greatest challenge, and for us in Bermuda, it is equally so and must be resolved.”
The new bank class will be called Restricted Banks. Although its prime goal is to accommodate the FinTech industry, it will also service citizens of Bermuda and other businesses. The revision includes outlines of types of business undertakings the new class can serve, as well as a provision that will allow further amends in the future.
The upcoming amendment was drafted after consultation with the banking sector. Previously local banks have been unwilling to provide banking services to FinTech due to regulatory barriers and aversion to risk.
Developing Hub for FinTech Companies
The British overseas territory is making an effort to position itself as a prime destination for FinTech innovation, having recently passed an ICO Bill and Digital Asset Business Act to in an attempt to attract crypto and blockchain companies. Burt praised FinTech for their ability to “quickly lay a foundation for growth, respond to emerging trends and preserve a reputation for sound management in the process”.
“For countries it is no different, Bermuda must be nimble or we will be left behind,” said the premiere of the country, before concluding his statement with a “commitment we made to building a better and fairer Bermuda.”
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