According to E. David Burt, the premier of Bermuda since 2017, QuadrigaCX would not have lost its master keys if the company had been registered in Bermuda rather than Canada. He gave his statements during an interview with the Fortune on ‘Balancing the Ledger’. He mentioned that a case like QuadrigaCX is not possible in Bermuda because of the cryptocurrency regulations in the country.
The sudden death of the founder of QuadrigaCX exchange in December last year has led to a bunch of issues for the investors and traders who had kept their holdings on the exchange. QuadrigaCX is not being able to gain access to the cold storage wallets where the funds of the users were stored. According to the company, the founder was the only person who had the keys to the wallet.
As stated by the premier of Bermuda, if QuadrigaCX was registered under the Bermuda Monetary Authority and not in Canada, the current situation would not have happened because according to the regulation for the custody of the master keys, the keys shall never be held by any single individual.
The premier also stated that Bermuda’s Digital Asset Business Act which was incorporated in 2018 has set a frontier for the companies that deal with blockchain technology and cryptocurrencies and makes sure that the rights of the clients always stay protected. The Act explains about the master keys, the handling of things, to make sure they are not lost, and even if they are lost, there should always be a method of recovery.
Blockchain and Cryptocurrency in Bermuda:
Bermuda is well known for being a crypto and blockchain friendly nation. The Bermuda government also made an announcement last year of its plans for amending the current Banking Act for establishing the latest class of banking system for rendering services to the blockchain and fintech businesses in the country.