Bermuda

No explicit "security token" carve-out: All tokens are "digital assets" under DABA section 3, including security, utility, payment, and NFT tokens.

Security-like tokens: Tokenized securities (e.g., representing equities, debt, or real-world assets) are digital assets regulable under DABA; BMA may require registration if they qualify as "securities" under broader laws.

Exclusions: Purely internal issuances to fund a business (not public) fall under DAIA rather than DABA's business activities.

Digital asset businesses in Bermuda (e.g., issuing, selling, redeeming tokens, exchanges, wallets, payment services) require licensing under the Digital Asset Business Act (DABA), with Class T (sandbox), Class M (modified), or Class F (full) licenses available. However, the stated minimum net assets of $100,000 and fees ($1,000 for Class T, $2,266 for Class M/F) are likely outdated; current evidence shows a Class F license has been actively issued and stablecoin/stellar blockchain initiatives are underway, indicating regulatory evolution that may have altered these specific requirements.

Public offerings/issuances: ICOs or public sales (e.g., to >35 persons) need BMA authorization under DAIA; exemptions available via section 16(2) filing. Bermuda-incorporated entities only; no physical presence required, but economic substance rules apply.

BMA reviews include token functionality, rights, AML compliance, and potential securities overlap. Licensees follow the DAB Code of Practice for governance, risk, and AML.

BMA Guidance (DAB Code): https://www.bma.bm/digital-asset-business

ICO Amendments: Companies Amendment Act (via bermudalaws.bm)

Unlicensed digital asset business: Fine up to US$250,000 and/or 5 years imprisonment.

Unauthorized digital asset issuance: Fine up to US$100,000, 5 years imprisonment, or both.

Non-compliance with BMA directions: Fine up to US$2 million.

AML/ATF violations (e.g., POCA Regulations): Up to 2 years imprisonment and/or US$750,000 fine; BMA civil penalty up to US$10 million per failure.

Bittrex Global Limited (in liquidation) is a Bermuda entity currently subject to Bermuda Court of Appeal proceedings regarding customer crypto assets.

Violation: Non-compliance with DABA requirements and Bermuda Monetary Authority Digital Asset Custody Code of Practice (2019), including segregation of digital assets in the "Andromeda Omnibus Wallet"; also AML/ATF and KYC issues.

Bermuda courts are actively adjudicating liquidation sanctions, with the BMA having opposed a sanction application in recent proceedings, but there is no confirmation that a final penalty has been imposed or withheld due to specific ongoing court proceedings as of July 2025.

The BMA’s investigation of Custodian Life was appointed in August 2023 under DABA section 61, and the Supreme Court of Bermuda granted the BMA’s petition to wind up Custodian Life in October 2023; however, by February 2025, new mandatory custody segregation rules and consultations on DABA amendments have superseded the initial investigation stage.

The Bermuda Monetary Authority petitioned the Supreme Court of Bermuda to wind up Custodian Life, and the court granted the winding-up order with joint provisional liquidators appointed, not Teneo FA, and liquidation proceedings are ongoing.