As reported on July 2nd by Finextra, the Government of Bermuda has announced plans to amend the Banking Act in an aim to establish a new class of bank to render services to local fintech and Blockchain organizations.
Updating the Banking Act comes as a result of consultations with local banks, who have been unwilling to provide banking services to the new type of companies on the island, citing regulatory issues and potential risks.
Upon introducing the bill in Parliament, Bermudian Premier and Minister of Finance David Burt said that the banks’ stance “cannot be allowed to frustrate the delivery on our promise of economic growth and success for Bermudians.”
He added “The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services. In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore it must be resolved.”