Regulations for initial coin offering, a key piece of the island’s cryptocurrency legislation, were officially gazetted today, national security minister Wayne Caines announced.

It came as Mr Caines warned that early talk of potential offerings would be “premature” — as new companies would need to pass the application process before engaging in business.

Mr Caines said the island’s bid to establish itself as a “major leader” in fintech had made “significant strides in the last six months”.

The minister emphasised that “all companies wishing to launch an ICO or run a digital exchange in Bermuda are subject to a stringent assessment and review process”.

He added: “This is consistent with the Digital Asset Business Act 2018 and the ICO Legislation of 2018.”

The regulatory framework, crafted jointly by the Government with the Bermuda Monetary Authority and administered by the BMA, employs a “robust programme of vetting and analysis that is built to affirm the quality of new applicants”, he said.

“The application requirements are structured to mitigate risks to consumers, investors and the reputation of Bermuda. To be clear, once the Acts fully come into effect, any company will need to follow the application process. Therefore any discussions about potential offerings or exchanges are premature.”

Mr Caines affirmed “transparent and open oversight” on the Government’s part.

“Once the fintech development fund comes into effect this will provide an opportunity for organisations to support the growth of our fintech industry as well as support Bermuda’s community, social and educational programmes.”