BDIC confirms Bermuda application in process following BMA’s public warning

(The Insurer) - Blockchain Deposit Insurance Corp has confirmed that it is in the process of filing registration documents with the Bermuda Monetary Authority, after the regulator issued a public warning declaring that the startup was not licensed on the island.Early on Monday, the BMA issued a notice in which it said it was aware of several articles that said BDIC was a Bermuda-formed company that was due to launch an insurance platform featuring its own digital token.As the BMA noted, such activities would require a licence issued by the regulator.“The Authority can confirm that the BDIC is not licensed or registered by the Authority to conduct any regulated activity in or from within Bermuda.“Further, the name BDIC does not appear on the register of companies that is maintained by Registrar of Companies, as would also be required,” the BMA said.The BMA in its note also issued a reminder that conducting business with unregulated entities “carries an increased risk for potential investors, especially when dealing with entities that make false representations in their promotional material”.“Anyone who chooses to conduct business with this entity does so at their own risk,” the BMA stated.In response, BDIC CEO Jeffrey Glusman said his company’s Bermuda filing is currently being processed by its legal counsel on the island.“Any inquiries about BDIC are welcome in regards to the business plan execution, structure and in general through email from the website Contact Us section,” the company said in a statement to The Insurer."The BMA was made aware of the delay and let us know this letter was part of their protocol, which we completely respect.“Now we move forward as planned with the filing, as we did in Hong Kong and are in Zug currently, so our mission to provide insurance for crypto wallets to normalize adoption globally stays on point,” said Glusman.As previously reported, BDIC launched in January with plans to underwrite a portfolio of cryptocurrency-related risks.At the time, the company, which is the international entity of Palm Beach, Florida-based Blockchain Deposit Insurance Consultant Group, said it “aims to revolutionise cryptocurrency insurance by providing digital wallet insurance for preferred cryptocurrencies, ensuring security and trust in everyday financial transactions”.BDIC has targeted becoming a Lloyd’s coverholder to begin underwriting.In the weeks since launching, BDIC has also opened an operation in Hong Kong and recruited Paul Kohli as co-founder and managing director of the platform.