With the regulatory policies and restrictions becoming slightly more than burdensome for the crypto companies in the U.S., they are slowly but surely making their way eastward toward Bermuda. It is apparent that the overall crypto-related scenario is a lot more relaxed in this part of the world.
According to the Head of the Corporate Department at Otterbourg law firm, Phil Berg, there are no clear rules and regulations made out in terms of crypto in the U.S. Besides, in his professional opinion, there seems to be less transparency and more confusion regarding the same.
There is the factor of shifting strictures and the wait for them to turn into the law of the land. All of this is working against the concerned crypto-based companies in the U.S.
In this regard, crypto companies making a move towards Bermuda should not be an element of surprise in any which way, as it is well known that the regulatory features there are much simpler to abide by. There is the factor of the Securities and Exchange Commission keeping a hawk’s eye on crypto companies, such as Coinbase, as well as Bittrex and Genesis, to name a few, against whom enforcement actions have been carried out, along with settlements and detailed investigations in the immediate past.
In the words of the Managing Attorney at the Gordon Law Group, Andrew Gordon, there is very little clarity where the regulatory factors are concerned, and this is only helping in confusing crypto companies further and adding to their woes.
Ever since Bermuda enacted its Digital Asset Business Act half a decade back, it has been involved in streamlining digital asset architecture. The act was instrumental in setting up a licensing body for issuing, as well as selling, and redeeming digital assets.
During this period, Bermuda has issued licenses to a whole league of crypto companies on its soil. Some of the prime names include Block, along with its affiliate, Cash App, as well as Circle, which is based in Boston and the supplier of the USDC stablecoin.
According to the Premier of Bermuda, David Burt, they indeed have a more organized regulatory scenario where all regulations come with clarity and flexibility. He agrees with the fact that the influx from U.S. soil is because of this. In his opinion, it was, in a way, Coinbase, which is the biggest crypto exchange in the U.S., which was instrumental in starting the exodus.
Over and above Bermuda, there is the Bahamas, where the influx of crypto companies has been witnessed. There was a time when the country was known for the crypto industry, following FTX operations being run from its soil. However, after the total fallout of the FTX, the authorities are working on forming a new set of regulations for the industry, benefitting all.
However, all said and done, in the case of companies inclined towards servicing U.S. customers, this migration will only prove to be a short-term solution. As per the opinion of Bitstamp USA Chief Compliance Officer Thomas Hook, it becomes necessary for crypto companies to carry out their operations from U.S. soil and function in accordance with the country’s rules and regulations if their intention is to connect with the U.S. market.
