Bermuda -- Regulatory Status Regulatory Overview

Bermuda maintains a comprehensive regulatory approach to cryptocurrencies and virtual assets, requiring licensing for digital asset businesses and issuances, with no bans in place. The primary regulatory body is the Bermuda Monetary Authority (BMA), which oversees licensing, supervision, enforcement, and issues supporting rules, codes, and guidance.[1][2][3][4][5]

Key Legislation

• Digital Asset Business Act (DABA, 2018): Establishes licensing for "digital asset businesses" (broadly defined to include exchanges, trading, custody, issuance, stablecoins, and more) conducted in or from Bermuda; applies to entities incorporated inside or outside Bermuda.[1][2][3][4][5]
• Digital Asset Issuance Act (DAIA, 2020): Regulates public offerings of new digital assets, requiring BMA permission.[2][5]
• Supporting rules (2018): Digital Asset Business (Cybersecurity) Rules, (Client Disclosure) Rules, (Prudential Standards) (Annual Return) Rules.[1]
• Additional: Proceeds of Crime (AML/ATF Financing) Regulations 2008 for anti-money laundering.[4]
• Recent: BMA Guidance Note (May 2024) for Single Currency Pegged Stablecoin Issuers (SCPSIs).[4][5]

Stance on Crypto Trading and Exchanges

Crypto trading, exchanges, and related activities (e.g., brokerage, market making, derivatives, payments, lending) are permitted under a tiered, principles-based licensing regime (Class T for testing, Class M sandbox for scaling, Class F for full operations), proportionate to business scale and complexity.[2][3][4][5] Unlicensed operations incur fines up to US$250,000 and/or 5 years imprisonment; businesses must meet AML/ATF, economic substance, client protection, and cybersecurity standards.[1][4] Stablecoins are fully regulated under DABA.[4][5]

The framework supports innovation (e.g., hosting issuers like Circle) while aligning with global standards like FATF.[3][4][5] The Office of the Privacy Commissioner oversees data protection under the Personal Information Protection Act 2016 but is secondary to BMA.[5] For official details, refer to BMA resources (no direct legislation URLs in results; see BMA site via search).