US Crypto Firms Migrate to Bermuda Amid Regulatory Concerns
Crypto companies are increasingly turning away from the US in search of clear digital asset regulations, and some of the major companies are finding a home in Bermuda. Still, some experts warn that this may be a short-term solution as the issues in the land of the free are not getting fixed.
One of the biggest crypto companies recently revealed its Bermuda arm. In April, Coinbase announced that it got a license under the Digital Asset Business Act from the Bermuda Monetary Authority (BMA), stating that,
"Bermuda was one of the first financial centers to pass comprehensive digital assets regulation [...] and its regulatory environment is long known for a high level of rigor, transparency, compliance, and cooperation."
It added that it chose Bermuda because the BMA is "a highly respected and experienced financial regulator" with close relationships with other regulatory agencies globally.
"What Coinbase recognized, which is what a lot of other companies have recognized, is that we have a superior regulatory environment," Bermuda Premier E. David Burt said at the Consensus 2023 in Texas, USA, as reported by CoinDesk.
"It is, as I’ve said, a race to the top for regulation, and Bermuda has proven that we are a place that you can do that."
Notably, Coinbase's move came at a time when it's facing a legal battle with the US Securities and Exchange Commission (SEC), which in March served the exchange with a so-called Wells notice, which typically precedes enforcement action.
In late April, Coinbase announced that it filed a lawsuit against the SEC to get the clarity it needs.
Anc Coinbase may influence other companies. Bermuda will "definitely be a hotspot for businesses that do choose to relocate. And they can put their toe in the
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