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Bermuda to be Considered Crypto Paradise Very Soon

by Matthew Harris
, Bermuda to be Considered Crypto Paradise Very Soon

Here at CTN, we recently began investigating the top crypto-friendly countries in the world today and while we’re covering quite a few, not many stand out quite as much as Bermuda.

Bermuda’s favorable tax rates and spectacular island lifestyle attract both major corporations and individuals with high net worth, reportedly providing the country with the highest GDP per capita in the world.

It’s a renowned tax haven, with neither any corporate, income, wealth, capital gains, or VAT taxes and only has a minimal payroll tax. However, Bermuda does have high consumption taxes on both goods and services, as well as high duties levied against all imports. As such, Bermuda is at the top of the cost of living index.

The country has more than 15,000 companies registered which actually have neither a physical presence nor employees there. One of the more famous companies to take advantage of their tax laws is Google, who sent over $10 billion to its Bermudan subsidiary and in 2011, this allocation allowed Google to avoid $2 billion in taxes in 2011.

Since Bitcoin and other cryptos aren’t recognized as legal tender in the country yet, this light taxation policy extends to them as well.

In 2017, Bermuda launched the Blockchain Task Force with a mission to “advance the regulatory environment” and to develop the island nation as a destination for utility tokens, tokenized securities, cryptocurrencies, and coin offerings.”

The following year in April, the Bermuda Monetary Authority (BMA), Bermuda’s financial regulator, published a paper known as the Virtual Currency Business Act (VCBA) that proposed “regulation of virtual currency business.” The VCBA hopes to implement anti-money laundering (AML) standards while providing a reasonable, friendly framework for cryptocurrency businesses and startups. The proposed rules aren’t actually prohibitive and are intended to help foster a predictable and safe environment. In addition, ICOs will be required to implement KYC measures and obtain explicit approval from the Minister of Finance before being allowed to operate in the country.

The largest crypto exchange by volume is also the largest crypto business with ties to Bermuda, Binance. In April of 2018, Binance’s founder and CEO signed a memorandum of understanding with Bermuda’s Minister of Finance and so far they have invested $15 million in Bermuda.

In July of last year, the island nation created a new class of bank just to cater to blockchain and fintech organizations that have been incorporated on the island. Currently, there are over 20 companies currently incorporated in Bermuda and almost the same amount have already reserved their names for incorporation.

Bermuda is also being strategic about its own development, signing memoranda of understanding with Shyft, Binance and other blockchain companies. The memoranda stipulates that the organizations will invest in blockchain education initiatives in the country in order to help the local population benefit from the industry as well as encourage economic activity and growth.

While Bermuda’s laws may have been the initial draw for many crypto-enthusiasts, they’re setting themselves up to become a paradise that encourages blockchain and cryptocurrencies while ensuring that their residents and their country benefit as much as possible.

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