Bermuda's Bold Step into Bitcoin-Backed Life Insurance

Blockchain is gradually stepping beyond cryptocurrencies, finding applications in areas like identity management and healthcare.

However, its entry into life insurance has remained relatively untouched. That may change as Bitcoin-only life insurer Meanwhile gains regulatory approval.

Regulatory Milestone for Meanwhile

Meanwhile, a company dedicated to Bitcoin-backed life insurance, has become the first to secure a Class IILT license from the Bermuda Monetary Authority (BMA).

This approval comes after the company successfully navigated an 18-month regulatory sandbox, proving its capability to meet stringent requirements.

Building Bridges Between Crypto and Traditional Finance

Founded in January 2022 by Max Gasner and Zac Townsend, Meanwhile has quickly gained attention in both the cryptocurrency and traditional finance sectors.

The company raised $20 million in seed funding in June 2023, attracting investors like OpenAI’s Sam Altman and former Stripe executive Lachy Groom.

Bermuda's Forward-Thinking Regulatory Environment

Bermuda is known for its progressive stance on cryptocurrency regulation.

The island’s Digital Asset Business Act 2018 offers a favourable environment for crypto ventures, including tax advantages with 0% income and capital gains tax on digital assets.

The Class IILT license, tailored for long-term insurance businesses with a focus on technology, highlights Bermuda's commitment to integrating innovative approaches into the insurance sector.

Challenges and Limitations

While the approval marks a significant step forward, Meanwhile’s Bitcoin-only model assumes a positive long-term trend in Bitcoin's price.

Furthermore, the product currently targets high-net-worth individuals, limiting its broader market appeal.

This raises questions about consumer protection and how regulators will keep pace with the evolving landscape.