“New Bermuda Legislation Will Create a Novel Class of Bank to Service FinTech Companies”
Bermuda is determined to establish itself as the jurisdiction-of-choice for FinTech entrepreneurs, in particular, those involved in initial coin offerings (“ICOs”), digital assets and virtual currencies. Having recently passed the ICO Act and the Digital Asset Business Act, the Hon. E. David Burt, JP, MP (Bermuda’s Premier and Minister of Finance) and his cabinet now are focused on creating a new class of bank to facilitate Bermuda’s FinTech initiative.
This Stroock Special Bulletin examines a new bill, titled the Banks and Deposit Companies Amendment Act 2018 (“Restricted Banks Act”), which will establish a new, restricted banking license to encourage banks to provide their services to FinTech companies. This legislation is vital, as to date Bermudian banks have been unwilling to provide banking services to the island’s nascent FinTech startups. The Government of Bermuda and the Bermuda Monetary Authority strongly believe that the Restricted Banks Act will resolve this impediment and propel Bermuda’s FinTech initiative forward.