US Crypto Firms Set Sail to Bermuda Amid Regulatory Turmoil
With the regulatory environment in the U.S. becoming increasingly challenging, American crypto companies are looking east to Bermuda and its friendlier digital asset framework.
While it is not unusual for crypto firms to go offshore and take advantage of clearer digital asset laws, after Coinbase obtained a monetary license to operate there, some predict that Bermuda may become the new Bahamas.
The renewed interest in crypto frameworks outside of the United States is a reaction to the country's key regulators cracking down on crypto firms, and Congress moving slowly to establish new rules for the industry. The Securities and Exchange Commission has targeted crypto companies including Coinbase, Kraken, Bittrex, and Genesis with enforcement actions, settlements, and investigations in recent months.
Phil Berg, head of the corporate department at Otterbourg law firm, said that Bermuda could be a hotspot for businesses that choose to relocate. He added that the punishing approach by regulators in the U.S. had made a jurisdiction with some regulatory clarity attractive.
While it remains to be seen how the regulatory environment in the U.S. will evolve, more and more crypto firms are looking outside of the country for clearer regulations and greater freedom to operate.