Last year, Bermuda's Premier and Finance Minister, David Burt, launched the Blockchain Task Force. It included a Legal and Regulatory Working Group which would ensure that the country creates a blockchain-friendly environment for interested organizations and startups. Four months later, Burt has come forward with another initiative: to make sure Bermuda regulates ICOs for the first time in blockchain history.
In a statement published on the official website, a bill was proposed in front of the parliament. Burt spoke about blockchain-related developments worldwide as well as criminal activities recorded in these areas. He noted that even though these violations existed, the technology behind the developments could easily disrupt "traditional methods". This is why it is important for the government to provide a legal framework. It will ensure that people stay within the limits of the specified regulations while making progress in their projects.
"ICOs have been used to enhance existing product and service offerings and to develop and implement new ones, all without the added costs and burdens of having to hire expensive middlemen to arrange transactions ... Bermuda has an opportunity to become a global leader in the Fintech space by being one of the first countries in the world to specifically regulate ICOs. "
ICO: Restricted Business Activity
A bill will be drafted by making a few adjustments to existing Bermuda laws. The finance minister will grant permission to ICOs, only then will they be allowed to operate legally. In order to pass this step, ICOs must provide information of people handling the project, roadmaps, future product development, hard cap or soft cap and details of the digital asset, among others.
While countries have either banned such activities or imposed strict rules, Burt offers that Bermuda must leave its "comfort zone" and welcome technological innovation in its land. The country's parliament is requested to discuss this matter immediately, however, no date has been specified in the statement. Towards the end, Burt emphasized the opportunities laid down by blockchain industry, "We will not stand in the shadows and watch it pass us by."
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