Self-custodial wallet / non-custodial software in Bermuda
Publisher of software where users hold their own private keys. The publisher never holds, controls, or has access to user funds.
Self-custodial wallet is permitted in Bermuda subject to low licensing burden.
Verdict Details
- Permitted
- yes
- Local entity required
- No
- Licensing burden
- Low
- Last updated
- 2026-07-13
Key Restrictions
- The publisher does not hold, control, or have access to user funds, removing it from DABA's definition of 'digital asset business' (which covers custody, exchange, and payment services).
- Non-custodial software publishing does not constitute issuing, selling, or redeeming digital assets — the user transacts independently.
- If the software includes a token issuance to fund the publisher's own business, that may fall under the Digital Asset Issuance Act (DAIA), separate from DABA licensing.
Key Risks
- BMA may take an expansive view of what constitutes a 'digital asset business' — software that integrates swaps, staking, or fiat on/off ramps could cross into regulated activity.
- If the software publisher issues a token to fund the project (e.g., via ICO), DAIA approval and economic substance rules would apply.
- Enforcement precedent (Bittrex Global) shows BMA actively polices custody and asset segregation; non-custodial software is inherently segregated but must avoid any ancillary custody or private-key access.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Digital Asset Business Act 2018 (DABA): Core licensing framework.
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 However, the stated minimum net assets of $100,000 and fees ($1,000 for Class T, $2,266 for Class M/F) are likely outdated; current evidence shows a Class F license has been actively issued and stablecoin/stellar blockchain initiatives are underway, indicating regulatory evolution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.
Evidence fact bm.licensing.digital-asset-act-definitions not found (may have been renamed).
Regulator: Bermuda Monetary Authority (BMA).
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- low
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Yes — pure non-custodial wallet software publishing does not trigger DABA licensing because the publisher never holds or controls user funds, but confidence is low due to limited explicit guidance on software-only operators and risk of functional recharacterization if ancillary features are added.
Questions this verdict aims to answer
- Does software publishing trigger VASP / MSB classification?
- Do AML obligations attach when no custody exists?
- What disclosure or consumer-protection rules apply?