Blockchain trading company Velocity Ledger Holdings Limited (VLHL) has been authorized by Bermuda’s Ministry of Finance to go ahead with its plan for a new initial coin offering (ICO) in accordance with the British overseas territory’s companies act.
The Premier of Bermuda, David Burt, said: “Velocity Ledger represents the exact kind of company that Bermuda is pleased to attract. They have a traditional finance industry pedigree and are building solutions for the institutional finance market. Their platform will showcase the potential of what Fintech and Bermuda have to offer.”
Bermuda’s first ICO certification under its new regulations for cryptocurrency and blockchain businesses was given out last October.
VLHL is a Bermuda registered company with two subsidiaries for which the ICO will fund operations – VL Financial, and Velocity Ledger Technology Limited (VL Tech). In a press release (Apr 10), Velocity Ledger said VL Financial is working with the Bermuda Monetary Authority (BMA) to acquire the necessary license to run a digital assets platform. If successful, VL Financial will operate an exchange in Bermuda supporting asset-backed investment and real estate tokens.
Earlier this month, The Crypto Sight reported that VL Financial has just partnered Prime Trust to grow its digital asset custody business.
VL Tech, meanwhile, is a private blockchain-enabled platform for generating tokenized assets, secondary trading, and settlement of trades. Its users require token ownership, where VL tokens may be used for licensing VL technology platform and services. The VL token sale was approved on March 22 and is expected to begin in the middle of April through July 2019.
“Bermuda has adopted pragmatic, non-restrictive frameworks for digital assets that provide regulatory certainty to market participants.” CEO of VLHL Shawn Sloves said regarding the announcement.
Bermuda has been working on greater clarity in the treatment of blockchain businesses. In December 2018, BMA introduced a draft of its “Digital Asset Custody Code of Practice” aimed at making it clearer the regulator’s position on crypto custody services in Bermuda. With client protection also in mind, the code calls for digital asset businesses to ensure any client assets are kept separate from their own.