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 framework for stablecoin issuance and services
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 However, the stated minimum net assets of $100,000 and fees ($1,000 for Class T, $2,266 for Class M/F) are likely outdated; current evidence shows a Class F license has been actively issued and stablecoin/stellar blockchain initiatives are underway, indicating regulatory evolution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?