On April 27th, 2018, Bermuda’s Minister of finance, David Burt, signed an MOU with the Binance Group. Present during the MOU signing was Changpeng Zhao who is the founder and CEO of Binance. The memorandum of understanding is set to provide funding for educational programs that have to do with fintech and blockchain startups.
Binance is set to spend around $10m on university level training to train Bermudians on blockchain technology development and compliance via the Binance foundation. The firm will further give $5m in investment for new blockchain firms founded in Bermuda through Binance labs.
According to the Bermuda Minister of Finance, the Binance goals are in line with Bermuda’s aims and objectives that include the provision of leading and well-regulated jurisdiction, which is suited for the growth of the fintech industry. The government of Bermuda plans to come up with a friendly and legal framework for blockchain and virtual currencies.
The minister further notes that the Bermuda government hopes to make the country the first in the world to comprehensively govern ICOs without the jurisdiction of the country. In his own words, “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 at this point in time we will work with all persons who we believe represent future growth for the people of this country and future opportunities and jobs.”
Zhao noted that according to research by the company, Bermuda has one of the leading regulatory bodies for cryptocurrency industry. He pointed out,
We think the Bermuda Government and regulatory body are one of the most approachable, most reasonable and most forward-thinking bodies on the planet.
Zhao further stated that the exchange has already started working with solicitors from Bermuda to ensure that the new office is set up in accordance with the law. According to Burt, the company would commit to helping the local economy.
During the press conference, the CEO did address the recent lawsuit filed against him by a US-based venture capital firm for allegedly breaching a contract. The lawsuit was brought in the Hong Kong high court by California based venture capital firm Sequoia Capital. The issue stems from a discussion about an injection of capital into the venture capital company last year when the firm was launched. Zhao pointed out that the Hong Kong court had already rejected the lawsuit and ordered Sequoia to repay the legal fees used by Binance.
Binance Is Making More Than One Partnership
Binance is the second-largest cryptocurrency exchange by market capitalization in the world. It has its headquarters in China but it operates in many countries globally. It is very popular for its crypto-to-crypto exchange services. It has become the preferred choice for buying and selling digital coins by crypto investors due to its high number of ICOs and its low trading fees. The large user base means it has a respectable volume.
In yet another partnership this week, the firm has announced a collaboration with Ugandan blockchain organization Crypto Savannah to support the country’s economic development and youth empowerment. The partnership is also aimed at attracting more investors in Uganda.
What do you think about the new partnership between Binance and the Bermudian government? Should other exchanges seek similar partnerships to encourage the popularity of cryptocurrencies globally? Let us know your views on this issue in the comments section below.