Crypto Tax Payments Permitted in Bermuda

Bermuda has started accepting tax payments using Circle's stablecoin known as USD Coin (USDC).

Brian Njuguna

Oct 17, 2019 07:40

Crypto Tax Payments Permitted in Bermuda

Circle, a worldwide financial services firm, revealed on Oct.16th that Bermuda has started accepting tax payments using its stablecoin known as USD Coin (USDC).

This undertaking is a part of a broader strategy by the Bermuda administration to utilize decentralized financial services and protocols, as well as the United States dollar-backed stablecoins.

Circle CEO and co-founder Jeremy Allaire noted:

“Bermuda’s Premier made a broader announcement today about embracing stablecoins as the future of the financial system, with a focus on innovations in fintech that can deliver value not just for Bermudians, but also globally via company's licensed under their Digital Asset Business Act.”

Presently, Bermuda’s economy is dependent on the United States dollar to back up its Bermudian dollar. Allaire, therefore, trusts that this approach will be instrumental in ensuring that USDC is embraced in governmental services.

Circle also acknowledged that the company had been given a “Class F” license under Bermuda’s 2018 Digital Assets Business Act (DABA). It has, therefore, been claimed that this accreditation makes the firm the first-ever primary wallet service and cryptocurrency exchange provider to be given such a permit.

Allaire proclaimed:

“Through the DABA, Bermuda is one of the first countries in the world to create a comprehensive regulatory framework for digital currency and digital asset-based products and services, including licensing of firms operating payment systems using stablecoins. It will be interesting to see how other governments will respond to this fundamental innovation.”

In 2018, USDC was established based on a partnership between Circle and Coinbase.