Bermuda Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Press Information Bureau, Bermuda's Financial Intelligence Agency, Bermuda Monetary Authority
Primary Legislation: s own business/project falls under the Digital Asset Issuance Act (DAIA), separate from DABA, Digital Asset Business Act 2018 (DABA): Core licensing framework., Investment Funds Act 2006: For tokenised funds involving stablecoins, Digital Asset Issuance Act (DAIA, 2020): Regulates public offerings of new digit, Digital Asset Business Act (DABA) 2018: Establishes the core framework for regul, ICO Act, Bermuda permits crypto trading and exchanges under regulation, recognizing them
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: Capital Gains Tax: None levied on digital assets.. Income Tax on Crypto: No income tax on digital assets or related transactions; the 2025 corporate regime overrides prior tax undertakings but targets only large multinationals.. VAT/GST: No VAT or GST applies to cryptocurrencies.. Foreign Currency Purchase Tax: A 1% tax applies to purchases of foreign currency from Bermuda-based banks by residents, but this does not cover crypto purchases, which occur via exchanges.. Digital Asset Business Act (DAB Act, 2018): Requires licensing from the Bermuda Monetary Authority (BMA) for activities like issuing/selling digital assets, operating exchanges, custodial wallets, or payment services using digital assets. Licensed entities must segregate client assets, maintain bonds/insurance, and comply with cybersecurity/prudential rules.

Key Facts

aml Bermuda has established a comprehensive and progressive regulatory framework for digital assets, making crypto legal and regulated within its jurisdiction, overseen primarily by the Bermuda Monetary Authority (BMA). Hanford Site Near-Facility Environmental Monitoring Data Report for Calendar Year 1998 The BMA is the sole financial services regulator in Bermuda and administers the Digital Asset Business Act 2018, which creates a tailored licensing regime for crypto businesses. Life-Cycle Cost and Risk Analysis of Alternative Configurations for Shipping Low-Level Radioactive Waste to the Nevada Test Site Licenses under the Digital Asset Business Act 2018 are available in multiple classes (Class T, F, M, and S), and the BMA has actively licensed several entities since the regime's inception. Link to loc.gov AML obligations are aligned with FATF standards, requiring full CDD, EDD for higher-risk relationships, ongoing transaction monitoring, and mandatory STR filings to the Financial Intelligence Agency (FIA). Anti-money laundering registration - GOV.UK The practical reality is that Bermuda offers a credible and functioning licensing pathway for digital asset businesses, with a demonstrable track record of issued licenses and an active compliance and enforcement posture by the BMA. Federal Register of Legislation Home Page The principal regulatory authority for digital assets in Bermuda is the Bermuda Monetary Authority (BMA), which serves as the integrated financial services regulator for the jurisdiction. Hanford Site Near-Facility Environmental Monitoring Data Report for Calendar Year 1998 The core legislation governing digital asset businesses is the Digital Asset Business Act 2018 (DABA), which was enacted to establish a comprehensive licensing and supervisory framework for entities conducting digital asset business activities in or from within Bermuda. Life-Cycle Cost and Risk Analysis of Alternative Configurations for Shipping Low-Level Radioactive Waste to the Nevada Test Site The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2018 (the "AML Regulations") establish the detailed AML/ATF obligations applicable to digital asset businesses, alongside the Proceeds of Crime Amendment Act 2015 and the Anti-Terrorist Financing Act 2015. Anti-money laundering registration - GOV.UK
enforcement Regulator: Bermuda Monetary Authority (BMA). Entity targeted: Bittrex Global (Bermuda) Ltd (Class F Full DABA licensee, ceased operations in 2024). Violation type: Non-compliance with DABA requirements, including segregation of digital assets in the "Andromeda Omnibus Wallet," Digital Asset Custody Code of Practice (2019), AML/ATF, KYC, and UN Sanctions protocols (identified via 2022 onsite inspections). Penalty amount: Not specified in sources. Date: BMA concerns raised in 2022 inspections; investigation appointed August 2023 under DABA section 61; Supreme Court ruling May 2025 (Lai and others v BMA); sanction application July 2025. Outcome: BMA appointed Teneo FA for investigation; company in liquidation with joint liquidators seeking court sanction for interim distribution to former customers (July 2025 ruling approved steps); UBOs/directors' legal challenge rejected by Supreme Court in May 2025. Fines up to US$250,000 and/or 5 years imprisonment for unlicensed digital asset business. Fines up to US$10,000,000 for DABA breaches or non-compliance with BMA directions. License revocation, public censure, prohibition orders, or court injunctions. Unlicensed digital asset business: Fine up to US$250,000 and/or 5 years imprisonment.
general The exact effective date of Bermuda's Travel Rule implementation Specific threshold amounts for transaction reporting A detailed list of which VASPs are covered
licensing Items used as a medium of exchange, unit of account, or store of value (not legal tender). Representations of assets like debt or equity in the promoter. Representations of other assets or associated rights. Access to applications, services, or products via distributed ledger technology (excluding certain affinity/rewards programs). If issuing securities via digital assets, prior BMA approval is required, plus additional policies compliant with BMA securities issuance rules. Pure digital asset issuance to fund the issuer's own business/project falls under the Digital Asset Issuance Act (DAIA), separate from DABA's business licensing. ICOs are restricted activities needing BMA approval; no physical presence required, but economic substance rules apply. Exemptions are limited (e.g., non-exchangeable rewards); most token issuance to third parties requires licensing.
status The Bermuda Monetary Authority (BMA) is the primary regulator, responsible for licensing, supervision, enforcement, and approving activities like initial coin offerings (ICOs), which are classified as restricted business activities. Digital Asset Business Act (DABA) 2018: Establishes the core framework for regulating digital asset businesses, including definitions, licensing requirements, and ongoing obligations; supplemented by rules such as the Digital Asset Business (Cybersecurity) Rules 2018, Digital Asset Business (Client Disclosure) Rules 2018, and Digital Asset Business (Prudential Standards) (Annual Return) Rules 2018. Companies and Limited Liability Company (Initial Coin Offering) Amendment Act 2018 (ICO Act): Specifically governs ICOs and digital business assets. Bermuda permits crypto trading and exchanges under regulation, recognizing them as digital asset businesses; it supports activities like stablecoin issuance (e.g., a planned Bermuda dollar-backed stablecoin) and has licensed nearly 50 digital asset companies, including exchanges and related services. Unauthorized digital asset issuance or business conduct is a criminal offense, punishable by fines up to US$100,000, up to five years imprisonment, or both. No ban exists; the framework integrates crypto with traditional finance, such as reinsurance-linked stablecoins, and has hosted events like the world's first fully licensed USDC airdrop. All digital asset businesses (incorporated in or outside Bermuda but operating in or from Bermuda) must obtain a Class M, F, or S license from the BMA, depending on the activity (e.g., exchanges, custody, trading). Examples include Jewel Bank (first with DABA and banking license) and firms like Onre under dual licenses.
tax Capital Gains Tax: None levied on digital assets. Income Tax on Crypto: No income tax on digital assets or related transactions; the 2025 corporate regime overrides prior tax undertakings but targets only large multinationals. VAT/GST: No VAT or GST applies to cryptocurrencies. Foreign Currency Purchase Tax: A 1% tax applies to purchases of foreign currency from Bermuda-based banks by residents, but this does not cover crypto purchases, which occur via exchanges. Digital Asset Business Act (DAB Act, 2018): Requires licensing from the Bermuda Monetary Authority (BMA) for activities like issuing/selling digital assets, operating exchanges, custodial wallets, or payment services using digital assets. Licensed entities must segregate client assets, maintain bonds/insurance, and comply with cybersecurity/prudential rules. Companies and Limited Liability Company (Initial Coin Offering) Amendment Act 2018 (ICO Act): Mandates company registration with the Registrar of Companies for ICOs conducted in or from Bermuda.
travel rule Bermuda has a regulated digital asset sector where cryptocurrency businesses are legal and must be licensed by the Bermuda Monetary Authority (BMA). Sweeping ‘travel rule’ changes for digital assets - The Royal Gazette The primary legal framework for AML/ATF compliance, including the travel rule, is Part Four of the Proceeds of Crime (AML and Anti-Terrorist Financing Supervision and Enforcement) Act 2008, as administered by the BMA. Sweeping ‘travel rule’ changes for digital assets - The Royal Gazette As of November 2025, the BMA has confirmed that stringent new travel-rule data requirements for digital asset transfers are now in force, with no exemption for transaction size. Sweeping ‘travel rule’ changes for digital assets - The Royal Gazette The BMA has held AML outreach webinars to communicate these obligations to the industry, and the changes apply to all payment service providers operating in Bermuda. Sweeping ‘travel rule’ changes for digital assets - The Royal Gazette Bermuda is positioning itself for a Caribbean FATF mutual evaluation, and the BMA frames these updates as part of maintaining the jurisdiction’s reputation as a reputable international financial centre. Sweeping ‘travel rule’ changes for digital assets - The Royal Gazette The Bermuda Monetary Authority (BMA) is the primary regulator for digital asset businesses and AML/ATF supervision in Bermuda. Sweeping ‘travel rule’ changes for digital assets - The Royal Gazette The BMA’s AML/ATF supervision is conducted by named senior analysts including Luis Goncalves (senior analyst, supervision AML/ATF) and Tyron Gounden (senior analyst AML/ATF supervision). Sweeping ‘travel rule’ changes for digital assets - The Royal Gazette The principal law governing AML/ATF obligations is the Proceeds of Crime (AML and Anti-Terrorist Financing Supervision and Enforcement) Act 2008, specifically its Part Four, which is the Bermuda legislative embodiment of the travel rule. Sweeping ‘travel rule’ changes for digital assets - The Royal Gazette

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-06. View full profile