Binance Makes USD 15 Million Crypto Investment in Bermuda
The Bermudian government steps up efforts to transform the country into a cryptocurrency trading hub
Binance, the world’s largest cryptocurrency exchange platform by market capitalization, has signed a deal with the Bermudian government, which involves a USD 15 million crypto investment in the country, both parties said on Friday.
Speaking at a joint press conference, Bermuda’s Minister of Finance David Burt announced that a memorandum of understanding (MOU) has been inked with Binance CEO Changpeng Zhao. Under the agreement, Binance will spend up to USD 10 million on university-level training for Bermudians in blockchain technology development and compliance through the group’s Binance Foundation. The MOU also states that Binance Labs will invest up to USD 5 million in new Bermuda-based blockchain start-ups. In addition, the trading company will help the Bermuda government develop a regulatory framework for cryptocurrencies and blockchain, as well as establish a new office in the country.
Binance has already started working with local solicitors in order to ensure that the new office will be compliant with the law. Zhao noted that research conducted by the exchange group shows Bermuda's government and regulatory bodies “are one of the most approachable, most reasonable and most forward-thinking bodies on the planet.”
Last year, Bermuda launched the Blockchain Task Force to ensure that the country creates a blockchain-friendly environment for interested organizations and start-ups. Bermuda is also moving forward with Initial Coin Offering (ICO) legislation as it plans to become the first country to regulate ICOs.
"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 represent future growth for the people of this country and future opportunities and jobs,” Burt said during Friday’s press conference. He added: “Binance has decided that their goals align with our aims and objectives to provide a leading, well-regulated jurisdiction, ideally suited to the growth of the FinTech industry.”
Binance has been in the news lately. Zhao was sued by venture capital firm Sequoia Capital for allegedly breaching an exclusivity agreement. During Friday’s press conference, Zhao addressed the lawsuit, noting that "the Hong Kong high court has already rejected it and ordered Sequoia to repay our legal fees.”
Bermuda is not the first country to bank the support of Binance. Last week, the group partnered with Crypto Savannah to support Uganda’s economic transformation and youth employment through blockchain. In addition, Binance is expanding to Malta and has partnered with industry peer Changelly to increase the liquidity of the firm.