The New York-based commercial bank Signature Bank will begin offering financial services to fintech companies in the island state of Bermuda, the daily Royal Gazette reports on 28 February.
Banks in Bermuda have mostly avoided dealing with the fintech industry, which needs financial services.
Bermuda Prime Minister David Burt said
“Signature Bank’s willingness to consider Bermuda-licensed banking services companies is an important vote of confidence in Bermuda’s efforts to establish a leading regulatory framework for the fintech business”.
In a policy statement, it was reported that Signature Bank has agreed to offer a full range of banking services to companies that comply with Bermuda and Signature Bank standards. John Tamberlane,
Vice President of Signature Bank, said
“We are impressed by the progress Bermuda has made at the regulatory level and look forward to working with the Bermuda government to support the growth and expansion of the fintech and digital asset industries in this country”.
Bermuda has revised its regulatory framework for crypto, blockchain and fintech companies. In July 2018, the government amended the Banks and Deposit Companies Act 1999 to create a new banking class for blockchain and fintech companies. Premier Burt then said: “The success of the fintech industry globally depends on the ability of the companies operating in the area to make use of the necessary banking services”.
In the same month, the government proposed new regulations for the introduction of Initial Coin Offerings (ICOs
The regulations required detailed information on the projects from the ICO issuers in Bermuda, including “all persons involved in the ICO”. The government issued its first certification in October 2018 under the new regime.
“As a result of our business development and advertising efforts, 66 fintech companies have been established in Bermuda”.