Bermuda

**No explicit "security token" carve-out**: All tokens are "digital assets" under DABA section 3, including security, utility, payment, and NFT tokens.[1][5][6]

**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.[2][6]

**Exclusions**: Purely internal issuances to fund a business (not public) fall under DAIA rather than DABA's business activities.[5]

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 However, the stated minimum net assets of $100,000 and fees ($1,000 for Class T, $2,266 for Class M/F) are likely outdated; current evidence shows a Class F license has been actively issued and stablecoin/stellar blockchain initiatives are underway, indicating regulatory evolution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.[2][3][7] Bermuda-incorporated entities only; no physical presence required, but economic substance rules apply.[2][3]

BMA reviews include token functionality, rights, AML compliance, and potential securities overlap.[2][3][5] Licensees follow the **DAB Code of Practice** for governance, risk, and AML.[5]

BMA Guidance (DAB Code): https://www.bma.bm/digital-asset-business [1][5]

ICO Amendments: Companies Amendment Act (via bermudalaws.bm) [3]

Unlicensed digital asset business: Fine up to **US$250,000** and/or **5 years imprisonment**.[1]

Unauthorized digital asset issuance: Fine up to **US$100,000**, **5 years imprisonment**, or both.[2]

Non-compliance with BMA directions: Fine up to **US$2 million**.[1]

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.[1]

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.

**Penalty:** No final penalty imposed (court proceedings ongoing as of July 2025 for liquidation sanctions).

**Date:** BMA concerns raised post-2022 inspections; investigation appointed August 2023 under **DABA section 61**.

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.