A regulatory crackdown on cryptocurrencies has led US companies like Coinbase to keep an eye on Bermuda.
As the regulatory environment in the United States turns dark and difficult, American crypto companies are looking to Bermuda for a friendlier regulatory framework.
Phil Berg, head of law firm Otterbourg, said: “ Bermuda will certainly be a hotbed for businesses choosing to relocate. And they can follow in Coinbase’s footsteps.” The US Securities and Exchange Commission has targeted crypto companies such as
Coinbase, Kraken, Bittrex, and Genesis with enforcement and investigative actions in recent months.
Bermuda has spent the past 5 years building and refining its digital asset framework , establishing a clear digital asset licensing regime.
Bermuda has licensed crypto companies including Block and its subsidiary Cash App, along with Circle, the Boston-based issuer of USDC stablecoins.
Coinbase, the largest cryptocurrency exchange in the US, made headlines last month when it received a license from the Bermuda Monetary Authority. The company opened an overseas derivatives exchange a few weeks later.