The Bermuda government has awarded XBTO, a provider of institutional cryptocurrency liquidity, a formal license under their Digital Assets Business Act of 2018 (DABA), making it the third crypto startup to receive such a permit.
XBTO Group is a diversified, digital asset operator. The firm is involved in crypto-related trading products, market making, OTC trading, mining, blockchain development, asset management, and venture investing.
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British Overseas Territory grants the so-called “Class F (“Full”) DABA” license to digital asset exchanges, as well as crypto platforms, e-wallets and other operators of similar structures. The approved applicants work under the Digital Asset Business Act 2018, and the supervision of Bermuda’s primary regulator, the Bermuda Monetary Authority (BMA).
The new legislation was obviously designed to attract cryptocurrency entrepreneurs, who are moving businesses to locations more welcoming as they face intensifying scrutiny from regulators across the globe.
Bermuda also hopes the new development would create a booming new revenue source while assuring startups their project won’t fall subject to restrictive regulations.
XBTO joins ex-Tether exec for a stablecoin clearinghouse
Earlier in February, crypto finance firm XBTO has teamed up with Phil Potter, previously an executive at Bitfinex and Tether, to launch a new venture allegedly offering a clearinghouse for stablecoins.
The initiative will act as a traditional central clearing counterparty to facilitate the stablecoins transactions through what they described as “a liquid market price and for a fixed minimal fee.”
Commenting on the new approval, the company said in a statement: “XBTO was one of the earliest Fintech companies to choose Bermuda as its domicile for its international operations and has been a welcomed proponent and evangelist for the regulatory clarity that Bermuda has developed with our regulatory framework.”
“We appreciate their collaboration, feedback and insights as we strive to deepen and diversify our footprint in the Fintech industry. We look forward to building upon our relationships with key players like XBTO as we continue to play a constructive role in the further development of this rapidly evolving industry,” added Premier David Burt.