What has happened?
Bermuda's parliament has introduced initial coin offering (ICO) legislation as it bids to become a global leader in cryptocurrency.
What does this mean?
Under the proposals, an ICO will be treated as a restricted business activity that will require consent from the Minister of Finance.
The Bill includes minimum requirements that will be applicable to all ICOs, including:
- mandatory disclosures of certain information related to the company
- the digital asset being offered for sale
- the rights of the purchaser
Other key provisions include the establishment of a FinTech Advisory Committee to assist with consent applications and details around the publication and content requirements of ICO white papers.
“Bermuda has an opportunity to become a global leader in the Fintech space by being one of the first countries in the world to specifically regulate ICOs," said Bermuda Premier, David Burt.
"The proposed regulatory framework will provide legal certainty to companies looking to conduct ICOs in Bermuda."
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