New draft for crypto regulation from Bermuda’s financial regulatory is in our crypto news today according to their official press release published on Tuesday.
The official document for the draft created by the Bermuda Monetary Authority is entitled ‘’Digital Asset Custody Code of Practice’’ hopes to clarify the stance on crypto custodial services in Bermuda in order to protect their clients’ assets.
In the document, there’s a detailed regulatory basis for the offering of crypto custodial services where business management and technology issues were included, but also transaction handling and operating hot and cold storage.
The goal is to deliver high protection for the crypto custody clients and the Bermuda Monetary Authority suggested that the Digital Asset Business must implement ‘’any assets belonging to clients are kept segregated’’.
The DAB is allowed to put all of the assets of the clients in a trust with a qualified custodian and they are also allowed to use indemnity insurance and take any other possible measures to guarantee the assets of the clients in case the DAB is suspended.
BMA’s senior advisor of financial technology Moad Fahmi explained that the authority will provide support a ‘’healthy digital asset ecosystem’’ so that ‘’quality players’’ that can impact the financial market, in general, be involved.
The Bermuda Monetary Authority is not a central bank but it is an integrated regulator of the financial sector in Bermuda and also operates as an issuer of the national currency of Bermuda.
Back in April, the BMA published another paper that was meant to measure the feedback from the public regarding the regulation of crypto-related services. Also, the government of Bermuda issued the first license for an ICO in July 2018.
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Accounts Of The First Digital Bank In India Closed After Involving In Crypto-Related Activity
“I've been a user of DBS' Digibank for a year. Although I regularly used Kotak Mahindra Bank for my cryptocurrency transactions, I used Digibank only 7 times throughout the year. On January 14th, I received multiple messages from my twitter [sic] followers regarding an account closure notice by Digibank. I checked my mailbox and found the mail myself.”However, Digibank stated:
“Reserve Bank of India through their public notices have warned/advised the public regarding risks associated with virtual currencies. We reiterated the same vide our emails dated 4th May 2018 and 2nd Aug 2019, cautioning our account holders [against] the risks associated [...] and that DBS accounts and debit cards should not be used for their purchase or any kind of dealings.”Many other users responded to the allegations that not only Digibank but many other banks are doing the same as well.
BitMex Pulls The Plug On Trading Accounts In Quebec And The US
‘’The development comes at the same time as the Hong Kong-based company notifying users in North Korea, Iran, Syria, Cuba, Sudan and Sevastopol in the Crimea since the fourth quarter of 2018 against holding positions or trading on BitMEX, as these are restricted jurisdictions.’’It seems like BitMex only wants to cover its back and provide protection for their users against regulatory crackdowns. However, the exchange decided to pull the plug on the trading accounts after the Canadian regulatory body has announced the BitMex is operating illegally in Canada:
‘’BitMEX is not registered with the AMF and is therefore not authorized to have activities in the province of Quebec. We informed this company that its activities were illegal.’’There is still no explanation why the exchange decided to shut down the trading accounts in the US. Many believe that the exchange does so because of the same strict crypto regulations. We are still expecting a comment from BitMex since it seems like there is almost a billion dollars worth of crypto still on the platform.
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