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The continued depreciation of cryptocurrency might help Bermuda achieve its objective of becoming a worldwide center for digital assets.

Bermuda’s Minister of Economy and Labor, Jason Hayward, believes the island has the potential to become a global center for the cryptocurrency business. On the other hand, according to the lawmaker, the industry should function under a comprehensive regulatory framework so that investors are better protected in situations like the recent collapse of Luna/UST.

Bermuda is unconcerned by the cryptocurrency meltdown

Jason Hayward, Bermuda’s Minister of Economic and Labor, does not see the recent crypto market drop as an intrinsically negative occurrence. This, he believes, may even help the island’s ambition of becoming a digital asset center.

According to Hayward, Bermuda’s government began opening its arms to the cryptocurrency field in 2018. Even during the bad market in 2018, the government strongly supported the asset class, implying that this support will continue throughout the present downturn.

Nonetheless, due to the collapse of Terra’s native token Luna and its algorithmic stablecoin UST, the Minister believes that adequate laws must be established. He said that such oversight might help to prevent future investment losses.

According to David Schwartz, President of the Financial & International Business Association, Bermuda is among the world’s leaders in developing infrastructure for crypto firms and enacting proper rules. Anti-money laundering regulations have also been reinforced by the local authorities, monitoring whether bitcoin or altcoins are used in illegal transactions.

All bitcoin enterprises in Bermuda must get a license from the Bermuda Monetary Authority, according to legislation passed in 2018. (BMA). The island’s primary financial authority likewise regulates the local insurance and reinsurance industries.

Circle, BlockFi, and Bittrex are among the 14 crypto businesses that have been granted permission to operate on local land by the BMA.

Crypto hubs may be found all around the world

Portugal and Gibraltar come to mind when discussing countries with a favorable attitude toward the digital asset business. The former regards the asset class as a currency and does not charge local investors any VAT or other taxes. Recently, the country’s officials considered enacting such a tax but eventually decided against it.

Gibraltar, a British Overseas Territory, is another example. It has a regulated cryptocurrency policy to safeguard enterprises dealing with the asset class, and it is one of the first to use blockchain technology.

Huobi, China’s largest crypto exchange, has announced its plans to relocate its spot-trading operations there.

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