Bermuda Plans to Become the First Country to Regulate ICOs
Last year, Bermuda's Premier and Finance Minister, David Burt, launched the Blockchain Task Force. It included a Legal and Regulatory Working Group, which would ensure that the country makes a blockchain-friendly environment for interested organizations and startups. Four months later, Burt has come forward with another initiative: to ensure Bermuda modulates ICOs for the first time in blockchain history.
In a statement printed on the official website, a bill was proposed in front of the parliament. Burt spoke about blockchain-related developments worldwide in addition to criminal activities recorded in these areas. He noticed that even though these violations existed, the technology behind the developments could easily disrupt «traditional methods». This is why it's important for the government to give a legal framework. It will ensure that people remain within the limits of the specified regulations while making progress in their own projects.
«ICOs have been used to enhance existing product and service offerings and to develop and implement new ones, all without the added costs and burdens of having to hire expensive middlemen to arrange transactions ... Bermuda has an opportunity to become a global leader in the Fintech area by being one of the earliest countries in the world to specifically regulate ICOs. „
ICO: Restricted Business Activity
A bill will be drafted by making a few alterations to present Bermuda laws. The finance minister will grant consent to ICOs, only then will they be allowed to operate legally. So as to pass this measure, ICOs must supply information of individuals handling the job, roadmaps, future product development, hard cap or soft cap and details of the digital asset, amongst others.
While countries have either banned such activities or imposed strict rules, Burt offers that Bermuda must leave its “comfort zone» and welcome technological invention in its land. The country's parliament is asked to discuss this matter immediately, but no date has been given in the announcement. Towards the end, Burt highlighted the opportunities laid down by blockchain industry, «We won't stand in the shadows and watch it pass us by.»