Quadriga CX keys wouldn't have been lost in Bermuda, claims leader

26 Mar, 2019
by David Robb
Opinion
Quadriga CX keys wouldn't have been lost in Bermuda, claims leader

As the QuadrigaCX case continues, one world leader recently weighed in with his own take. In an interview with Fortune's Balancing The Ledger show, Bermuda premier David Burt claimed that the exchange's security would've been much better had it registered in Bermuda. 

QuadrigaCX gained worldwide media attention due to the unique circumstances surrounding its failure. After the death of its CEO, the collapsed exchange no longer had access to his laptop, which contained the keys for over $100 million worth of customers' funds. The company's directors are still in the process of trying to pay off creditors, and many have accused QuadrigaCX of suspicious activity or at least extreme negligence.

Read more: 'QuadrigaCX case shows need for cryptocurrency regulation'

Burt believes that this could never have happened in Bermuda. The island nation, which is often popular in the business world due to its low tax rates, apparently has specific rules that companies registered there have to follow. Bermuda established a legislative framework that was intended to encourage crypto and blockchain firms to set up in the country, with the Digital Asset Business Act taking effect towards the end of summer 2018.

According to Burt, "If Quadriga was licensed under the Bermuda Monetary Authority, what has happened would not have been able to happen, because we have rules regarding the custody of master keys and making sure they’re not held by a particular individual...(the Digital Business Act) basically states what you have to do with the master keys, how those things have to be handled, and making sure that they cannot be lost, or if they are lost, there’s a way for that recovery to happen

Read more: 37 altcoins that have outperformed Bitcoin in 2019These are the 3 coins to watch for Q2 2019 - Cryptocurrency

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