The Bermuda government has launched an initiative to attract and accelerate the growth of digital currency business on the island.

The government has announced the formation of a task force in order to advance Bermuda’s regulatory environment as a destination for utility tokens, tokenised securities, cryptocurrencies, and coin offerings. The task force will comprise of two teams.

According to the official release, the Bermuda Business Development Agency (BDA) will take a lead role in the initiative.BDA Consultant for Emerging Technologies John Narraway was named as chair of the Blockchain Business Development Working Group, while BDA Board member Lydia Dickens will chair the Blockchain Legal and Regulatory Working Group, of which the BDA’s Head of Business Development Sean Moran will also be a member. Minister for National Security Minister Wayne Caines will lead the effort.

“We are pleased to partner with the government and drive business development efforts of this strategy,” said BDA CEO Ross Webber. “It’s all part of our agency’s push for economic diversification, to bring new business to the island, help boost GDP and create jobs, and ensure existing industry service providers are able to benefit, grow and expand. It’s about innovating based on the strengths of the Bermuda market.”

Regulatory Framework for DLTs

Premier the Hon David Burt announced plans to bring distributed ledger technologies (DLT) under a regulatory framework. The framework would regulate the activities of firms operating in or from Bermuda that use the technology to store or transmit value belonging to others, such as virtual currency exchanges, coins and securitized tokens.

Importantly, the government said Bermuda-based token issuers would need to join and comply with the code of conduct of the new Bermuda Crypto Association, including measures to ensure enhanced business transparency, KYC and AML.

“Bermuda is committed to building upon its position as an innovative international business centre,” said Premier Burt, “and is considering a complementary regulatory framework covering the promotion and sale of utility tokens, aligned with the DLT framework.”

The regulatory framework for distributed ledger technologies (DLT) would become operational in early 2018.