With policymakers in the US starting to scrutinizeCryptocurrencies, they are increasingly turning to friendlier and less bureaucratic places likeBermuda to grow their businesses and test new products.
The British territory was one of the first places to establish a regulatory framework for digital assets. The island has a single agency that can be more responsive to the needs of the industry.
It has made it an attractive destination for businesses because of the fact that the local officials have embraced the industry. The US Securities and Exchange Commission is already probing a number of companies for potentially offering unregistered securities and recently announced plans to beef up a team dedicated to policing digital assets. Lawmakers like Elizabeth Warren want to rein in the market.
It's wonderful to work with one regulator and have the freedom to have an active dialogue in an environment that supports innovation, according to the president of CrossTower Inc. The company is based in New Jersey but has an office on the island.
Boggiano said that companies can go toBermuda to test their products and gather data that they can bring back to the US when they're ready.
David Hart, the chief executive officer of the Bermuda Business Development Agency, said that it was a slower process to get through in the US.
The BMA has a program that allows businesses to work with regulators to try out new technologies. If the idea is successful, companies can graduate to a full license. There are currently 14 companies with licenses from that program, including four that have test licenses, according to the minister of economy and labor.
It has been rewarding for persons to build on and grow their concepts into actual full businesses that are operating globally.
With help from Akayla Gardner.
(Adds background on US enforcement efforts in third paragraph.)
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