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New York Bank to start opening accounts for crypto startups in Bermuda

Crypto startups in Bermuda

Cryptocurrency adoption has been on the rise the past few years with a rise in crypto startups in Bermuda.

The country has now seen the growth in startups opening new Bank accounts in New York according to a prepress release that was published on Thursday by the Government of Bermuda.

In the announcement, a partnership was echoed between the country and a New York-based Signature Bank.

Based on the announcement, the deal will allow the country’s FinTech companies to access these U.S Banking services and companies in the country can now apply for a banking application at any Signature bank which the government has notified about.

Banks and cryptocurrency implementations

The cryptocurrency industry is beginning to see mainstream banks services come into the cryptocurrency space in order to partner with crypto startups.

This was, however, not the case a decade ago within the crypto and Blockchain space. Many, however, think this is because of the unregulated crypto space along with some confusing legal status of the cryptocurrency industry.

However, the space is still seeing some companies going to banks in order to open a bank account for their business for better liquidity.

According to Bermuda’s Premier David Burt, most Banks are still quite reluctant to take on risks of dealing with young startups supporting cryptocurrencies like bitcoin.

The country has been busy with lawmakers in order to assert regulations in the crypto industry like the amendment of the Bank deposits companies Act 1999, in order to authenticate crypto and Fintech businesses which saw the licensing approximately 66 FinTech companies in Bermuda.

According to comments coming from Burt:

“Signature Bank’s endorsement showcases how Bermuda is competitively placed to advance the pace of the digitisation of global commerce as modern technology is applied to the highly regulated world of Finance”

Setting up a cryptocurrency company

This Signature Banks approval of Bermuda’s crypto industry came in the wake of its friendly nature with cryptocurrency applications. This bank is also known for launching Signet which is an Ethereum based payment platform using stable coins for setting up transactions.

As stated by Joseph J. DePaolo, the President and CEO at Signature Bank:

“Since launching at the start of the year, our Blockchain based Signet system has on-boarded multiple clients who are using it to send each other millions of dollars, 24 hours a day, seven days a week. We are seeing trades in the millions some days tens of millions other days, with the number of Signet clients in the triple digits.”

Crypto startups in Bermuda will also be provided with banking services from traditional companies such deposit accounts and corporate debit card.

What do you think of the push for crypto startups in Bermuda? Please feel free to leave a comment down below.

coinmag

My occupation is the Research of blockchains and their practical applications in the economy. I have graduated through various levels of education, including electrical technique, Business, Psychology, and innovative technologies.

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