Bermuda, a British island territory will be announcing its plans to set up a Special bank that offers financial services to cryptocurrency and Blockchain companies next week. Edward David Burt, Premier of Bermuda made this known while at the 2019 World Economic Forum in Davos, Switzerland, according to a media outlet on January 28.
Bermuda to Offer Financial Services to Crypto Companies
Reportedly, David Burt stated that Bermuda would be publicizing its plans to set up a Special bank from next week. This financial institution will have the role of providing banking services to cryptocurrency and Blockchain companies. As such, this will help to foster the growth of these modern technologies in the country.
In Burt’s words:
I’m proud to say that next week we’ll be making an announcement revealing that a bank will be set up in the country that will start accepting crypto and blockchain companies.
Although Bermuda had already made efforts in the past to encourage banks to offer these services, many institutions were adamant. These banks had pointed out that there were regulatory barriers and they were also trying to avert risks. Burt, on the other hand, said part of the setup would ensure that these banks are more willing to open its doors to firms in the crypto industry.
Bermuda May Be Among Countries Offering Services to the Industry
If this is the case, then Bermuda will be one of the few countries that have approved the dealings of banks with the industry. Reports from July 2018 reveal that there was an amendment to the Banking Act to create a new class of bank. The aim was to allow banks to cater to Fintech and Blockchain companies.
India, on the other hand, has been working against the crypto industry. One way this is evident is the prevention of banks in the region from providing services to crypto-related companies and even individuals that trade these assets. The Reserve bank of India, for instance, sent a circular to financial institutions admonishing them of the risks involved in dealing with these companies.
Banks in India Close Customers’ Account for Trading Crypto
Consequently, some banks in the South East Asian country have closed their customers’ accounts because cryptocurrency transactions were made from it. An instance of this was reported by BTCNN on January 15, that Kotak Mahindra bank has forcefully closed the account of one of its customers for allegedly trading virtual currencies.
That aside, BTCNN on January 19 informed that Wyoming, a U.S. state has introduced a bill that will allow banks to offer custodial services for digital assets. According to the document, approved banks will be able to store and manage the customer’s virtual currency. Also, an agreement will have to be signed as to when the client’s asset will be refunded.