In December 2018 CEO Gerald Cotten died on a trip to India. With the grave he took the Priavte Keys to the Canadian cryptocurrency exchange “QuadrigaCX”. According to the company, the founder was the only person who had access to the Wallet for a total of $ 220,000,000.
Bermuda’s prime minister since 2017, QuadrigaCX would not have lost its private key if it had been registered in Bermuda and not in Canada.
His opinion was announced in an interview on the show “Balancing the Ledger” on March 25th. He mentioned that a case like QuadrigaCX in Bermuda is not possible because of the country’s crypto-currency regulations.
Bermuda protects customers with its own crypto law
The Prime Minister states that Bermuda’s “Digital Asset Business Act”, which came into force in 2018, has set a rule for companies that deal with blockchain technology and cryptocurrencies.
The law seeks to protect the rights of customers by dictating how to properly manage the private keys. The scheme should protect against losing access to wallets.
Even if a private key is lost, there should always be a method of recovery
In addition, the laws in Bermuda state that a private key should never be kept by one person.
The Bermudas are known for their blockchain and crypto-friendly attitude
Last year, the country’s government announced plans to amend the banking law to create a new class of banks. These are intended to provide services to local fintech and blockchain companies.
Also published on Medium.