Bermuda Plans New AML Rules

Bermuda Plans New AML Rules

Bermuda Monetary Authority (BMA) intends to implement a new anti-money laundering law to regulate domestic cryptocurrency activity. The authority is seeking public feedback on the same.

In BMA’s consultation paper which was published on Thursday, the authority said that it aims to capture a huge array of activities related to cryptocurrencies under the bill in order to develop a more formal framework. Such a framework would be successful in attracting and fostering the businesses related to cryptocurrencies, and would hence improve Bermuda’s take on cryptocurrency.

Much like the Australian AML policy, the virtual currency act suggested by BMA would make it mandatory for wallet services, cryptocurrency exchanges, and payment providers to collect and retain the information they have about their customers. The rules would also be applicable to the businesses which facilitate and promote initial coin offerings (ICO) and token sales.

The regulation on ICO organizers, notably, is not a part of the virtual currency act suggested by BMA. Instead, BMA devised a separate rule which includes supervision over ICOs.

Government officials have said that this proposal has not been developed to prohibit the nascent industry in Bermuda. It is instead meant to develop a comprehensive framework which would be able to offer a safer and stable environment to cryptocurrency businesses.

A report by the Royal Gazette Thursday suggests that Wayne Caines, Bermuda’s Minister of National Security, believes that the blockchain industry in Bermuda needs a well-rounded regulation for it to flourish. In an information session for the community on cryptocurrencies and blockchain, Wayne said:

We can’t keep up with the amount of people who want to come to Bermuda. We’re going to London at the weekend and we have 20 companies lined up to meet us. It’s actually phenomenal

Bermuda is the latest country to look out for ways to improve the situation of the blockchain industry in the country. The future of blockchain looks secure now with many countries taking the technology seriously and working towards implementing it locally. Stay updated about the future of blockchain by following our official Instagram page and Telegram channel!

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Syed Ali Mudassar
It was when he was pursuing his graduation in Computer Science that he found his flair for writing about new and existing technologies. He likes researching about technologies and how they could help people. Currently, he works as the Content Manager at CoinFrenzy, a leading blockchain news, and media publication website.