The British overseas territory in the north Atlantic Ocean, the Government of Bermuda, has been busy drafting a bill to officially make initial coin offerings legal. The legislative amendments being discussed hope to establish regulatory clarity for the market and bring in new investments to the island jurisdiction.
The nation’s House of Assembly plans to vote on the proposed bill that will establish a “measured approach”, after which businesses will be allowed to register their ICOs with the government.
The proposed law, as currently drafted, focuses on the regulation of the promotion, sale and distribution of digital currency fundraising activities and also creates disclosure laws that secure “the rights of the purchaser” and assist the public in making “informed decisions about participating in any proposed ICO.”
If the proposed amendments are passed, ICOs issuers will have to provide adequate, accurate and balanced information about their restricted business activities, as well as acquire the approval from the country’s regulators before beginning operations.
David Burt, Bermuda’s finance minister, explains that his country “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.”
He believes the new development can establish a great new revenue source, while assuring startups that their project won’t be negatively affected by restrictive regulations.
The initiative is designed to attract digital currency entrepreneurs who want to relocate their businesses to places that are more welcoming, after having to deal with so much global scrutiny.