- Bermuda‘s crypto-friendly laws and zero tax on digital assets make it a prime jurisdiction.
- The worldโs first Bitcoin-only insurer, Meanwhile, secures regulatory approval.
- The Class IILT license relates to innovative insurance firms.
Blockchain technology is expanding its horizons beyond cryptocurrencies, with potential applications emerging in fields like identity management, healthcare, and voting systems. Despite these advancements, blockchain’s integration into life insurance has remained largely unexplored. Meanwhile is a Bitcoin-only life insurer hoping to change that.
In a major advancement for the digital asset sector, Meanwhile has secured regulatory approval from the Bermuda Monetary Authority (BMA) for a Class IILT license, following a successful probationary period in the regulatory sandbox.
Bitcoin Insurer Meanwhile Graduates Regulatory Sandbox
Making crypto inroads into the life insurance space, Bitcoin-only life insurer Meanwhile becomes the first company to be granted a Class IILT license by the Bermuda Monetary Authority (BMA).
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This approval comes after an intensive 18-month regulatory sandbox process, during which the company demonstrated its ability to meet the BMAโs regulatory requirements.
Founded in January 2022 by Max Gasner and Zac Townsend, Meanwhile has quickly gained traction in the intersection of cryptocurrency and traditional finance. The company received a $20 million seed funding round in June 2023.
This funding was led by a notable group of investors, including OpenAI CEO Sam Altman, former Stripe executive Lachy Groom, and Gradient Ventures.
Commenting on securing BMA licensing, co-founder Zac Townsend stated, โThis approval validates our innovative approach to life insurance and marks a significant milestone in our mission, allowing us to credibly make promises to our policyholders for decades to come.โ
While other jurisdictions grapple with integrating innovation into their frameworks, Bermudaโs approach embraces it fully.
Bermuda Encourages Innovation
Bermuda is considered a forward-thinking jurisdiction, with cryptocurrency regulation such as its Digital Asset Business Act 2018 fostering a welcoming environment for crypto ventures. Known for its tax advantages, Bermuda extends these benefits to digital assets, providing 0% income and capital gains tax on cryptocurrency investments.
The Class IILT license granted to Meanwhile highlights Bermudaโs commitment to innovation in the insurance sector. Tailored for long-term insurance businesses with a technological focus, this recently created license class demonstrates Bermudaโs proactive approach to merging insurance with capital markets, AI, and blockchain technology.
Bermudaโs regulatory insurance sandbox has drawn a wide array of pioneering participants, including AI-driven warranty companies to those developing smart contract insurance for theft prevention.
On the Flipside
- A Bitcoin-only life insurance model assumes a long-term uptrend in price.
- Meanwhile’s product has a limited market due to targeting high-net-worth individuals only.
- The move towards crypto-based insurance products raises questions about consumer protection and how regulatory bodies will adapt.
Why This Matters
Meanwhile’s license approval signals a pivotal moment in the convergence of cryptocurrency and traditional finance.
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