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Quadriga’s Disaster Would Not Have Occurred in Bermuda, Country’s Premier Claims

  • Alex Dovbnya
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    Speaking to Fortune magazine, the leader of the Bermuda nation stated that the local regulation for crypto companies would have prevented the Quadriga situation. The trouble with the latter has made Bermuda tighten its regulation for exchanges

Quadriga’s Disaster Would Not Have Occurred in Bermuda, Country’s Premier Claims
Cover image via u.today
Contents

It’s been over three months since the CEO of Canada-based crypto exchange QuadrigaCX passed away, without giving even a hint at the location of the private keys that can return its investors their $190 mln in crypto.

Bermuda takes care of force majeure cases

Speaking to Fortune magazine, the leader of Bermuda, Premier David Burt, mentioned that Canada does not have necessary regulatory measures to control the crypto industry. If Quadriga had been located and certified in Bermuda, the situation that occurred to the investors would have never happened.

As per David Burt, the Monetary Authority in Bermuda obliges exchanges to store their master keys in a manner that they are not lost. But if they are, there must be a way to recover them.

The local legislation says that master keys to crypto vaults must not be held by just one person without any official entity having an access to a backup.

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Bermuda is open for crypto businesses

In summer last year, Bermuda issued a law, usually referred to as the Digital Asset Business Act 2018. This act is to be followed by overseas crypto platforms that decide to move to Bermuda and conduct business on its territory.

The act makes companies take care that master keys to crypto storage spaces can be recovered should they be lost at all.

By now, slightly over 70 fintech firms and platforms have gotten permission to incorporate their business in Bermuda. However, the first crypto exchange, Omega Dark, was approved only last week. One of those waiting to be approved is a Binance subsidiary.

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Quadriga’s lesson to the world

The Premier of Bermuda stated that from now on, all companies dealing with virtual assets that wish to work in the region will have to pass severe tests to make sure Quadriga’s situation will not repeat itself.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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