The financial services regulator of Bermuda, the Bermuda Monetary Authority (BMA), is inviting comments on a draft Code of Practice for Digital Asset Custody that it has released.
The purpose of the code of practice is to offer protection to the public while clarifying the expectations of the authority with regards to digital assets custody. The financial services regulator has set January 18, 2019 as the deadline for receiving feedback, according to a statement issued by the BMA.
Per a senior adviser at the Bermuda Monetary Authority, Moad Fahmi, the Code of Practice for Digital Asset Custody will benefit the country’s financial system:
We remind stakeholders that the [regulatory] framework was built with the aim of making sure that the core objectives of financial regulation are respected, that is: protecting consumers, ensuring stability of our institutions and maintaining integrity and confidence in financial markets – with a focus on maintaining the highest standards of AML/ATF [Anti-Money Laundering/Anti-Terrorism Financing].
Global Regulatory Leadership Ambitions
Bermuda’s Code of Practice for Digital Asset Custody has been issued as part of the island’s efforts towards becoming ‘regulatory leaders in digital assets’ as the managing director in charge of supervision at the BMA, Craig Swan, stated.
Other efforts by the British island territory to become a darling of the cryptocurrency sector have included amending the banking act with a view of attracting blockchain startups.
Bermuda Amends Banking Act to Favor Blockchain Startups https://t.co/iWnQk3Z1TV
— CCN (@CryptoCoinsNews) July 4, 2018
The amendments which were made to the country’s banking act came after the realization that local financial institutions were unwilling to provide banking services to blockchain firms owing to stringent regulations which saw them avoid new risks.