First Newly Regulated ICO in Bermuda

On 18 October Bermuda’s only daily newspaper, the Royal Gazette, reported that the government issued its first certification to an ICO since new regulations for blockchain and crypto business came into power.

The Royal Gazette writes that the Minister of National Security Wayne Gaines – his office is responsible for ICT policy and innovation – made an announcement confirming that Bermudan government awarded certification to FinTech startup Uulala.

Minister of Finance David Burt added new ICO regulations to the House of Assembly in July. The new rules demand ICO owners to present detailed information on everyone associated with the Initial Coin Offering.

ICO owners must also provide a detailed review of their project. This includes technical specifications for blockchain and software, financing system, market audience and the sum of money they intend to raise.

Uulala ICO’s target is to increase inclusion of underbanked and unbanked individuals by providing them financial services. Reportedly, the company created a decentralized P2P network which will allow using cash in the digital economy. It means that when users deposit funds to their virtual MasterCard, they can spend it in e-commerce shops or pay bills.

Strict Bermudan regulations

Oscar Garcia, the Uulala startup CEO, said to the Royal Gazette that his company raised $10 mln privately and plans to raise an additional $50 mln during the token sale. He also mentioned Bermuda’s strict regulations. Mr. Garcia said that it took them over four months to be approved and receive the license. Regardless of the long wait, Garcia thinks that it was the right choice for his company to register within the Bermudan jurisdiction. It is a well known financial hub and is praised for excellent regulatory stewardship, as well as progressive thinking on FinTech and blockchain.

Bermudan government was working hard for the past year to develop business-friendly regulations and make crypto, blockchain and FinTech companies feel welcome in their country. Additionally, the government is in the process of amending the Banking Act to improve banking services with blockchain and FinTech companies in mind. They also signed an agreement with several crypto and blockchain companies to develop the industry which in turn will provide more jobs for Bermuda residents.