The island nation of Bermuda is in the news today after it gave U.S-based cryptocurrency exchange, Bittrex, a Class F (“Full’’) Digital Assets Business Act license that will allow the platform to operate under the supervision of the Bermuda Monetary Authority (BMA). According to Bittrex Global CEO Tom Albright, Bittrex (Bermuda) will provide additional digital asset services like Futures, in particular, based on further approvals by the BMA.
Bermuda’s Digital Assets Business Act of 2018 (DABA) is a comprehensive regulatory framework that oversees crypto-financial services, including digital asset issuance, sale and redemption, exchange operations, and custodial services.
However, Bittrex is not the first entity to receive Bermuda’s DABA license since Circle was the first major crypto-company to receive Bermuda’s Class F DABA license. Meanwhile, the island nation had also struck a $15 million investment deal with Binance in the past. These developments are a sign of how the island nation has been keen to adopt cryptocurrency and blockchain tech over the past few months and years.
Like Bermuda, many governments across several nations have only now begun to study the use cases of cryptocurrencies and blockchain. However, Bermuda was one of the first sovereign nations to accept payments in USDC stablecoins for tax payments, fees, and other government services.
In fact, in 2019, Bermuda also announced the development of its blockchain-based digital ID system, followed by a stimulus token that allowed the distribution of financial aid to its population. The token project in question was actually accelerated after the outbreak of the COVID-19 pandemic for people in need of emergency funds.