The government of Bermuda is preparing a draft bill to formally legalize initial coin offerings (ICOs), the premier of the British Overseas Territory said last Friday.
David Burt, who is also Bermuda’s finance minister, said that his country “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.”
The proposed legislative amendments aim to create regulatory clarity for the industry and attract new investments to the island jurisdiction.
The Atlantic nation’s House of Assembly is expected to vote on the proposed bill, which would adopt a “measured approach.” Following a positive vote, companies will be able to register their ICOs with the government.
How Astra’s Decentralized Compliance Layer Fills a Legal Protection GapGo to article >>
The draft law, aiming to regulate the promotion, sale and distribution of crypto fundraising activities also establishes disclosure rules that secure “the rights of the purchaser” and assist the public in making “informed decisions about participating in any proposed ICO.”
With passage of the proposed amendments, ICO issuers will be required to provide adequate, accurate and balanced information over their ”restricted business activities,” as well as obtain approval from the country’s regulator before starting operations.
New revenue source
Burt also said he hopes the new development would create a booming new revenue source, while assuring startups their project won’t fall subject to restrictive regulations.
The initiative is obviously designed to attract cryptocurrency entrepreneurs, who are moving businesses to locations more welcoming as they face intensifying scrutiny from regulators across the globe.