David Burt, the Premier of Bermuda, has argued that a QuadrigaCX-like situation could not have happened in Bermuda. The reason given by him for the above statement is the country’s existing legislation in regard to digital assets and cryptocurrencies. The Premier made these statements in an interview on Fortune’s “Balancing the Ledger” show on March 25.
It is to be noted that he delivered the aforementioned comments following QuadrigaCX’ founder’s sudden death last December, and financial difficulty the infamous exchange subsequently faced. Notably, QuadrigaCX has not been able to access its cold wallets where it kept most of its assets. This is because Cotten was reportedly solely responsible for the wallets and related keys.
Interestingly, Bermuda’s Premier stated in the interview that QuadrigaCX’s private keys could never have been lost if the exchange were registered in Bermuda, and not Canada. Burt mentioned that if Quadriga was licensed under the Bermuda Monetary Authority, what has happened would not have been able to happen because Bermuda has rules regarding the custody of master keys and making sure they’re not held by a particular individual.
He seemingly discussed the country’s Digital Asset Business Act 2018. Notably, the Digital Asset Business Act 2018 is the new regulatory regime that sets visible boundaries for blockchain and crypto-related businesses and protects the rights of their existing and potential clients.
Interestingly, Bermuda is known for its crypto and blockchain-friendly position. Last year, the country’s government declared plans to make changes to the Banking Act. This was primarily done in order to establish a new class of bank to render services to local blockchain and fintech organizations. At that time, Burt allegedly mentioned that individual bank policies that cause an obstruction in providing banking services to the new type of companies “cannot be allowed to frustrate the delivery on our promise of economic growth and success for Bermudians.”