Bitt Digital Inc., a portfolio company of Overstock’s (NASDAQ:OSTK) Medici Ventures, has become the first company to successfully complete the regulatory sandbox by the Central Bank of Barbados and the Financial Services Commission.
Medici Ventures invested $4 million in Bitt in early 2016. The investment came shortly after Bitt’s launch of a digitized Barbadian Dollar.
According to Bitt, the Sandbox provided the company with the opportunity to test its blockchain-based Fintech products, services, and business models in a controlled environment while protecting consumers, stakeholders and the financial system from undue risk.
The Governor of the Central Bank of Barbados, Cleviston Haynes, issued a statement on Bitt’s exit:
“On behalf of the panel, I can confirm that the Regulatory Review Panel (RRP) considers the type of business activity trialed by Bitt to be a candidate for regulation under legislation that is currently being drafted. The RRP now deems the testing period to be complete.”
Bitt was said to be reviewed during an 8 month stint in the sandbox.
CEO of Bitt, Rawdon Adams said it was necessary that all financial services companies work with regulators and grant them full oversight of their operations. Adams said the results of this Sandbox will provide great comfort to our potential partners and to consumers.
Referencing the Data Protection Act, Adams said that:
“Consumers, businesses, licensed financial institutions, governments and investors can rest assured that Bitt is operating in full compliance with the laws of Barbados and is equipped to protect all client data from privacy risks.”