Bermuda Warns: Virtual Currency Shall Not Pass

Feb 07, 2018

Each jurisdiction makes and individual decisions on the matters of cryptocurrency business. We have already informed you about the countries whose reception of blockchain is mostly positive and the new legal initiatives are giving business space to work.

However, it is not about Bermuda. Currently, this territory is not against cryptocurrencies, but the Bermuda Monetary Authority has already expressed its position about crypto-investments. According to the authority’s opinion, investing in new technologies, including cryptocurrencies, poses a serious risk.

One of the scariest phenomen in crypto world is Initial Coin Offering (ICO). It differs from the traditional capital-raising process used by banks and venture capitalists. Mostly, ICOs are used by startup companies to raise money for making first steps in business. The Authority assumes that the unregulated initial token offerings can be dangerous for investors.

What are the main problems of ICO? First of all, cryptocurrencies are used for obtaining tokens. Investors purchase tokens on the Internet and initial coin offering tend to be global and anonymous. As a result, governmental authorities think of ICO as of a threat for a stable, classic economy.

Nevertheless, The Bermuda Monetary Authority, does not plan to ban cryptocurrencies in the nearest future. They suppose that bringing virtual currency and operations to appropriate regulation is challenging. This is the reason why the Authority warns investors to watch out from any reckless actions. It is reasonable that before spending money on unidentified tokens it is good to analyze reliability of investment. However, we are looking forward to the day when Bermuda governmental authorities will release new regulations on virtual currencies. If you plan on starting ICO or investing in one, Offshorelicense Ltd is ready to consult you on pros and cons of working with the cryptocurrencies.

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