Many fintech entrepreneurs are interested in having a presence in Bermuda, according to a lawyer who is advising them.
Stephanie Sanderson, a partner and head of technology and innovation at BeesMont Law, is crediting the regulatory framework set up by legislation this year for attracting the business.
“The Digital Asset Business Act 2018 legislation represents another significant and substantial step forward in the fintech sector, indicating that Bermuda is indeed executing its plan to become a global leader in the fintech industry,” Ms Sanderson said.
“We are seeing a very significant amount of people who are interested in establishing a presence here and this legislation will offer them a further incentive because they can be assured that the regulatory framework is first class.”
Daba became operative last month. The framework includes rules on client disclosure, cybersecurity and prudential standards.
Ms Sanderson explained that the Daba legislation makes digital asset business a regulated industry, with anyone wanting to conduct digital asset business will need a licence and the consent of the Bermuda Monetary Authority.
The regulations have teeth, she explained.
“There are substantial penalties under the legislation for anyone who fails to comply with any requirement or contravenes any prohibition imposed by or under Daba, including potential fines of up to $10 million,” Ms Sanderson said.
BeesMont has established a dedicated technology and innovation team to remain on top of changing legislation and a rapidly evolving industry.
Ms Sanderson said: “We are actively engaged with Government and the Bermuda Monetary Authority.
“Bermuda has already successfully launched the world’s most progressive initial coin offering legislation and as result we are seeing a great deal of interest from fintech companies who want to come and set up their operations here. Daba adds another incentive to choose Bermuda.”