Bermuda's Blockchain Strategy Goes Beyond Just Winning New Business

Bermuda is one of several small territories and microstates striving to leverage their nimble governments to attract blockchain and crypto businesses by creating regulatory certainty where other, larger governments have failed to deliver thus far.

Liechtenstein, Malta, Gibraltar and, most recently, San Marino have joined the race alongside Bermuda, all offering proposals - and in some cases formal legislation - that promise "Comprehensive blockchain legislation."

Since launching a blockchain task force in conjunction with the Bermuda Business Development Agency in late 2017, the government has passed legislation on ICOs and created a regulatory sandbox for those companies, put forth a Digital Asset Business Act and partnered with BitFury to shift the island's property deeds system to the blockchain.

With the competition here fierce, Bermuda is attempting to diverge from other places luring crypto and blockchain startups by moving beyond regulation, and incorporating its blockchain aspirations into its own public policy agenda - including re-envisioning its youth education and immigration policies.

Understanding Bermuda's blockchain strategy, and more importantly, what sets it apart also requires a historical view.

The dominance of Bermuda's reinsurance and insurance industries has also resulted in a burgeoning compliance-oriented sector, which Burt envisions as a critical resource for the blockchain businesses he hopes to attract.

While industry has been waiting with baited breath for the U.S. Securities and Exchange Commission to come out with formal guidance - since it was revealed that the regulator was closely investigating ICOs - Bermuda regulators have already set up a framework for those companies.

The memorandum of understanding between Bermuda and Binance stipulates that the crypto exchange will not only move its compliance center to the island, but also invest $10 million into blockchain-related educational programs and $5 million in blockchain startups over the course of two to three years.

In return, Bermuda will work to provide a steady talent pool for the company.

Echoing Burt, Narraway said, the arrival of such companies can bring Bermuda up to speed with the industry by converting and capitalizing on local talent, and ideally abet the island's "Brain drain," whereby highly-skilled locals move to other places where the market for such talent is more competitive.