According to a press release on April 10, the Bermuda’s Ministry of Finance has given approval for public initial coin offering (ICO) to the trading firm Velocity Ledger Holdings Limited (VLHL).
Bermuda Digital Asset Exchange License
Velocity Ledger Financial, a subsidiary of VLHL, is currently in the process of application with Bermuda Monetary Authority (BMA) to acquire a license to operate fully. If given the go signal by BMA, the company will start working on a digital asset exchange in Bermuda. The press release also stated that the company can utilize VL tokens as payment for a license on VL technology platforms and services.
CEO of VLHL Shawn Sloves stated that Bermuda is embracing practical but non-restrictive frameworks on digital assets which aims to provide market participants with regulatory certainty.
As stated by the Premier of Bermuda, Edward David Burt, to the Royal Gazette, Velocity Ledger has a traditional finance industry pedigree. They are seeking to build solutions for institutions in the finance market. VLHL’s platform will exhibit the potential of Bermuda and Fintech and what both firms have to offer.
Digital Asset Custody Code of Practice
On December 2018, BMA released “Digital Asset Custody Code of Practice,” a draft regulation which aims to explain the regulator’s position on Bermuda’s crypto custodial services and to guard their clients’ assets. With the primary aim to deliver high-performance protection for clients of crypto custody, BMA proposed that a Digital Asset Business should make sure that any assets owned by clients are separated from their own assets.
The government of Bermuda awarded the first-ever certification for an ICO under the new regulatory jurisdiction for cryptocurrency and blockchain business in October 2018.
Burt presented to the House of Assembly of Bermuda the new rules and regulations on ICOs in July last year. The guideline requires any ICO issuer to submit full-detail information about all individuals associated with the ICO.