The island of Bermuda is preparing virtual currency legislation as part of its plan to attract financial technology entrepreneurs. The Virtual Currency Business Act (VCBA) defines “virtual currency business” as the provision of issuing, selling or redeeming virtual coins, tokens or any other form of virtual currency. The act would also cover payment service providers, defined as: “a person whose business includes the provision of services for the transfer of funds.”It would also cover virtual currency exchanges, virtual currency wallets, and virtual currency services vendors, defined as any business providing specific virtual currency-related services to the public. The legislation will also address fraud prevention fraud and market manipulation, the integrity of cryptocurrency owners, clear descriptions of the risks for prospective investors, BMA enforcement powers, Caines said.
Cryptocurrency entrepreneurs coming to Bermuda wish to see rules as they will help to regulate the virtual currency industry. The government will also attempt to establish a Bermuda E-ID scheme this year. This will be a national digital identification program for businesses and residents that will strengthen the country’s fintech credentials. It will include rules for cryptocurrency exchanges.
The Caribbean Financial Action Task Force will also review Bermuda’s anti-money laundering and anti-terrorist financing measures.