Binance and Bermuda Sign a $15 Million Investment Pact
The popular yet controversial crypto exchange Binance has been searching for safe havens to take forward its crypto operations. Last month, having faced regulatory conflicts in Japan, Binance considered shifting its operations to Malta.
Now in another breakthrough deal, Binance has signed a $15 million investment pact with Bermuda for setting up its global compliance center in Bermuda. Bermuda’s Premier and Minister of Finance, David Burt met with Binance founder and CEO Changpeng Zhao signed a memorandum of understanding (MoU) which states that the crypto exchange will invest around $10 million in educational programs related to blockchain technology development and compliance. It also states that Binance Labs will be investing $5 million in fintech companies and blockchain startups based out of Bermuda.
Moreover, the two will also be working together to establish a regulatory framework for blockchain and digital currencies.
During the press conference, Burt said: "Through this partnership, Binance proposes to develop its global compliance base here in Bermuda, creating at least 40 jobs in Bermuda with at least 30 jobs for Bermudians ... [and] as soon as practical, develop a digital asset exchange in Bermuda subject to all required legal and regulatory processes, and finally, work collaboratively with the government of Bermuda and all necessary oversight agencies in the development and improvement of the robust legal and regulatory framework.”
Zhao said that Binance would “commit to helping the local economy” of Bermuda and that its regulatory bodies "are one of the most approachable on the planet”. The crypto exchange has started working with a local law firm in order to make sure that its new office will be compliant with all the existing laws, said Zhao.
During the press conference, Zhao commented on the recent lawsuit filed by the venture capital firm Sequoia Capital and rejected all the allegations stating that “the Hong Kong high court has already rejected it and ordered Sequoia to repay our legal fees.”
In the closing remarks of the press conference, Finance Minister David Burt talked about a new legislation that would allow passing the Initial Coin Offerings (ICOs). He also talked about the country’s positive intentions to “comprehensively govern” ICOs that are conducted within the country’s borders.
Burt said: "We want to ensure that Bermuda is the world's number-one place for regulation inside of this space. We have a reputation to protect, we will protect it but we will work with all persons who we believe represents future growth for the people of this country and future opportunities and jobs.”