Signature Bank, a New York-based full-service commercial bank is offering financial services to fintech companies in Bermuda, reported by a local news outlet Royal Gazette on Feb 28.
Although Bermuda has opened for crypto-related companies and developed regulations to support crypto and blockchain firms, the local banks have refused to comply with the fintech industry. This is a barrier for fintech startups to enter the market of the Island nation.
According to the report, Signature Bank has agreed to offer a variety of services to qualified companies that meet the standards set by Bermuda and Signature Bank.
“Signature Bank’s willingness to consider Bermuda-licensed businesses for banking services is a significant vote of confidence in and endorsement of Bermuda’s efforts to create a leading high standard regulatory regime for fintech business,” said Bermuda Premier David Burt.
In the press release, Signature Bank Vice-Chairman John Tamberlane stated that the company was impressed by Bermuda’s regulatory policy, and was “looking forward to working with the Government of Bermuda to help promote growth and expansion of the fintech and digital asset industry in that country.”
Bermuda has rebuilt its regulatory frameworks to accommodate crypto, blockchain and fintech businesses. Earlier in July 2018, the government revised its Banks and Deposit Companies Act 1999 to establish a new class of bank for blockchain and fintech industry. Also, the government proposed new regulations for initial coin offerings (ICOs), which required Bermudian ICO issuers to provide detailed information about the projects including “all persons involved with the ICO.”
“The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services,” Premier Burt added. “As a result of our business development and promotional efforts, 66 fintech companies have been incorporated in Bermuda.”