As crypto and DeFi accelerate, the immediate need for adequate regulation becomes more evident and more challenging. For innovative fintech, the best solution is often to find jurisdictions that offer sophisticated, forward-thinking regulatory frameworks. This concept has worked wonders in Singapore, Hong Kong and Dubai, but it is now the Bermuda Monetary Authority (GMA) that attracts cutting-edge blockchain companies.
Recent successful commercial applications on the Caribbean island are accelerating the rapprochement between innovative financial technologies and robust regulatory standards. They also provide a model for how smaller countries can support the development of digital assets while maintaining compliance.
GRVT recently made history as the world’s first regulated decentralized exchange (DEX) to obtain a Class M license from the Bermuda Monetary Authority. This step is a magnificent step forward for the DeFi ecosystem. This shows, in simple terms, that decentralized platforms can operate in a structured regulatory environment.
Co-founder and CEO Hong Yea highlights their core philosophy that “compliance should be the foundation of crypto and DeFi, not an afterthought.” Without it, gaining institutional trust and bringing revolutionary technologies into the mainstream becomes almost impossible. »
By obtaining this BMA license, GRVT proves that regulatory compliance is possible for DEXs and can be a strategic advantage in developing legitimacy. “Bermuda is a pioneer in structuring and providing regulatory guidance for the digital assets market. Obtaining the license from the BMA reinforces our commitment to connecting decentralized finance and regulatory compliance,” added Yea.
GRVT is not alone in making the exciting transition to Bermudian regulation. Kraken, the 7th largest centralized cryptocurrency exchange in the world by trading volume and a veteran of the CEX space, has also chosen Bermuda. The island nation was carefully selected as a strategic launchpad for Kraken’s global derivatives site. Kraken reasoned that a strong regulatory framework would be ideal for serving its 200 different contracts and 24/7 futures trading.
This compliance decision highlights Bermuda’s attractiveness as a “sophisticated” and “internationally respected” jurisdiction for digital asset businesses. As Bermuda Premier E. David Burt also noted: “Since 2017, we have made it our mission to provide regulatory clarity for digital asset businesses that meet our jurisdiction’s compliance standards. and risk management. We are pleased to see global companies like Kraken recognize Bermuda as a leading digital finance jurisdiction.
