Bermuda Premier David Burt: 'Nobody Is Coming to Bermuda to Flee Regulation'
Five years after the island jurisdiction passed its digital assets regulation, a steady stream of companies is coming to Bermuda because of its clear regulation.
AUSTIN, Texas – Bermuda’s prison has a spectacular ocean view, but digital asset companies aren’t setting up shop so their executives can see the inside of it, the island’s Premier said on stage at the Consensus 2023 festival.
“Bermuda is an excellent place to raise capital, but a terrible place to hide it,” David Burt said. “Yes, our prison does have an ocean view, but it’s still a prison. I promise that you won’t enjoy your stay.”
Burt said that, unlike some jurisdictions around the world, Bermuda has the regulatory clarity that companies in the digital asset space require – and have also been seeking.
Bermuda created one of the world’s first digital assets regimes with the Digital Asset Business Act 2018. The island nation currently has three types of licenses that begin with a “T” license for firms doing testing, an “M” license for firms looking to expand operations, and an “F” license for mature companies.
Coinbase, for instance, recently applied for a digital assets license in Bermuda. In the United States, it has asked a U.S. court to compel the Securities and Exchange Commission (SEC) to create a rulebook for crypto while also complaining that the SEC is alleging legal violations “on the fly.”
“We have very firm regulation, very tough regulation, but it is the fact that we have regulatory clarity. We know what a digital asset is … as it’s clearly spelled inside of our law,” Burt said.
“That is something that I think companies appreciate, and I think that's why companies are coming to our shores,” he said.
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