The Bermuda Monetary Authority has given a license to the Bermuda-based subsidiary of US-based cryptocurrency exchange CoinZoom. The Digital Asset Business Act license granted to CoinZoom Global Ltd enables the exchange to act as a trading platform for non-US clients looking for a way to trade digital assets beyond the United States.
A modified “M” license has been issued to the exchange, permitting a brokerage firm to trial its proof of concept and make sure its compliance initiative is practical to deploy over the long run.
To safeguard customers and prevent global crime, the BMA offers clear policy provisions and criteria for cryptocurrency payment systems. CoinZoom Global, Ltd. can now conduct business in Bermuda as a virtual currency exchange, providing services for secure wallets and leverage trading for digital assets, thanks to the DAB M license. The incorporation of cryptocurrency into daily life is made simpler for customers by such products.
Why are Crypto Companies Turning to Bermuda？
Among the first places to establish a regulatory system for digital assets was Bermuda, a self-governing British island. This is a conundrum that developed countries like the US have yet to address—unlike there, which has numerous agencies involved in overseeing cryptocurrency, Bermuda island only has one regulator, which allows it to be more flexible.
14 licenses for crypto companies to conduct business on the British overseas territory have been awarded by the Bermuda Monetary Authority (BMA). Four of these permits were approved by the regulator in 2022. Crypto firms are seeking friendlier and less restrictive locations like Bermuda to expand their businesses as they come under constant supervision from lawmakers in the US.
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