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The Bermuda government is continuing its plans to become a cryptocurrency platform despite a sharp decline in the market by 2022.

The small island known for its pristine red sand beaches and attractive tax policies has been expanding its crypto industry since 2017, according to Bermuda's economic and labor minister Jason Hayward.

He noted on June 3 that the government was not alarmed by the recent collapse of the Terra ecosystem in May, as the market has been facing several hurricanes since 2017.

Speaking to the Wall Street Journal (WSJ), Hayward pointed to the economic experience with local regulators in dealing with foreign business as a key factor in helping Bermuda become a crypto hub. He further added that the accident would not affect its further plans:

"We are aware of the recent decline in the price of cryptocurrencies and we remain convinced that we are not threatening the island's ability to become a crypto hub."

"This decline in industry is likely to further our goal and have a positive impact on our long-term growth and our contribution to the sector," he added.

To date the Bermuda Monetary Authority (BMA) has granted a total of 14 licenses to crypto companies to operate outside the British Isles, four of which were approved in 2022, notes Crag Swan, chief executive officer of the BMA.

The full list includes companies such as multilateral trading firm, Class T, crypto exchange Bittrex Global, USD Coin (USDC) issuing Circle Internet Financial Ltd., and providers of crypto interest accounts, BlockFi , who received the license in January earlier this year. .

Swan emphasized, however, that the BMA was not looking to accept anyone who wanted to establish a store in Bermuda and was looking at quality over quantity as part of its crypto hub ambitions.

"So it is clear that the people we are looking for in Bermuda should be fit and proper because we are actually looking to maintain a local quality name," he said.

Hayward said the Bermuda licensing process is divided into three categories: test license, amended license, and finally a fully licensed operating license. The testing phase usually takes between three to 12 months but did not give an indication of how long it takes to get a full license by the BMA.

Commenting on the regulatory environment in Bermuda, the president of the Financial & International Business Association (FATF) David Schwartz, told the WSJ that the Bermuda government is taking steps in its efforts to combat money laundering since 2020, but it still has work to do. to be done.

The FATF in Paris sets international AML standards, and Schwartz has suggested that the success of the Bermuda crypto industry may depend on how much the government controls and regulates the companies licensing:

"They have good rules and regulations, but it's all about use at the end of the day."

Source: cointelegraphy

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