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Is crypto legal in Bermuda? Rules & regulation (2026)

Crypto is regulated in Bermuda.

Bermuda operates one of the world's earliest and most comprehensive dedicated crypto regulatory regimes. Digital asset businesses (issuers, exchanges, custodians, payment providers, wallet operators) must be licensed by the BMA under DABA 2018, while token issuances are separately regulated under DAIA 2020 and the 2018 ICO Amendment Act. The framework has been progressively expanded — including 2024 stablecoin guidance and the Custody of Client Assets Rules 2025 — with no domestic tax on crypto for individuals.

Last verified Official sources first · MethodologyCompare Bermuda with other countries

Legal framework

Digital Asset Business Act 2018 (DABA) and Digital Asset Issuance Act 2020 (DAIA), supervised by the Bermuda Monetary Authority (BMA); supplemented by the Companies and LLC (Initial Coin Offering) Amendment Act 2018 and the Digital Asset Business (Custody of Client Assets) Rules 2025

Status by sub-area

  • Stablecoins

    In force

    Stablecoin issuance is a licensed digital asset business activity under DABA. The BMA published dedicated 2024 SCPS (Single Currency-Pegged Stablecoin) Guidance requiring 1:1 high-quality liquid reserves, monthly independent attestations, redemption rights and operational resilience.

  • Exchanges / VASP

    In force

    Operating a digital-asset exchange or VASP in or from Bermuda requires a BMA Class T, M or F licence under DABA. Licensees are subject to fit-and-proper, capital, AML/CFT, market-integrity, cybersecurity and audit obligations, with annual audited financials filed with the BMA.

  • Token Offerings

    In force

    Token offerings are separately regulated by the Companies and LLC (ICO) Amendment Act 2018 and the Digital Asset Issuance Act 2020 (DAIA). Issuances require BMA authorisation and publication of a filed issuance document; security tokens can additionally trigger prospectus rules under the Companies Act.

  • Custody

    In force

    Custodial wallet services are a licensed DAB activity. The Digital Asset Business (Custody of Client Assets) Rules 2025, effective 12 February 2025, impose detailed safeguarding, segregation, reconciliation and insolvency-waterfall obligations.

  • DeFi

    Partial

    Bermuda has no dedicated DeFi statute, but the BMA applies DABA proportionally: legal entities providing services around a protocol (treasury, front-end, custody) are in scope. In 2025 the BMA issued a Call for Proposals on Embedded Supervision to pilot on-chain regulatory oversight of DeFi.

    Still pending: Embedded Supervision Call for Proposals (2025) for on-chain DeFi oversight remains in pilot phase

  • Tax

    In force

    Bermuda imposes no income tax, capital-gains tax, VAT/GST or withholding tax on crypto — for individuals and for most companies. From 1 January 2025 a 15% Corporate Income Tax applies, but only to constituent entities of multinational groups with global revenues over EUR 750m; the OECD Crypto-Asset Reporting Framework (CARF) is being implemented for cross-border reporting.

Key points: crypto & digital assets in Bermuda

  1. Three-tier BMA licensing regime

    The BMA issues Class T (test/proof of concept), Class M (modified/sandbox, 6–12 months) and Class F (full) Digital Asset Business licences covering issuing/redeeming tokens, exchanges, payment service providers, custodial wallets and DA derivatives services. Minimum net-asset requirement is USD 100,000.

    bma.bm bma.bm

  2. Broad statutory definition of digital asset

    DABA defines 'digital asset' broadly to capture virtual coins, tokens, stablecoins and other DLT-based value representations — allowing the BMA to catch new tokenisation activities without new legislation.

    bma.bm bma.bm

  3. Custody of Client Assets Rules 2025 in force

    The Digital Asset Business (Custody of Client Assets) Rules 2025 came into force on 12 February 2025, mandating segregation of client assets, restrictions on pooling, third-party custodian due diligence, priority waterfalls on insolvency and annual expert reviews.

    lexology.com cdn.bma.bm

  4. Enforcement teeth

    Breach of DABA or DAIA authorisation and disclosure requirements carries penalties of up to USD 10 million, alongside BMA supervisory sanctions.

    globallegalinsights.com

  5. No crypto-specific tax

    Bermuda imposes no income tax, capital-gains tax or withholding tax on digital-asset transactions for individuals. The 2025 corporate income tax only applies to in-scope multinationals with global revenues over EUR 750m.

    globallegalinsights.com applebyglobal.com

  6. Active DeFi engagement

    In 2025 the BMA issued a Call for Proposals on Embedded Supervision for DeFi, seeking pilots for on-chain compliance/reporting, while treating legal entities providing services around otherwise-decentralised protocols as in-scope of DABA.

    bma.bm practiceguides.chambers.com

Timeline of decisions

  1. Decision
    Bermuda, the small island nation with huge crypto ambitions

    CoinDesk Policy

  2. Guidance · official
    BMA issues updated licensing guidance for prospective digital asset businesses

    The Bermuda Monetary Authority published a refreshed Guidance Note setting out expectations and the application process for firms seeking a Digital Asset Business licence, consolidating the regime's maturation since 2018.

    Bermuda Monetary Authority

  3. Guidance · official
    BMA launches DeFi 'embedded supervision' pilot via call for proposals

    The BMA invited firms to a collaborative pilot testing real-time, automated supervision of decentralised finance (e.g. continuous stablecoin collateral monitoring), positioning Bermuda at the frontier of DeFi oversight.

    Bermuda Monetary Authority

  4. Law · official
    Digital Asset Business (Custody of Client Assets) Rules 2025 take effect

    New rules required DABA licensees holding client crypto to segregate customer assets and maintain surety bonds, trust accounts or indemnity insurance, tightening custody protections after global exchange failures.

    Bermuda Monetary Authority

  5. Guidance · official
    BMA issues Single Currency Pegged Stablecoin (SCPS) Guidance

    The guidance set prudential standards for DABA-licensed stablecoin issuers, including full reserve backing in high-quality liquid assets, monthly independent attestations, redemption rights and wind-down plans.

    Bermuda Monetary Authority

  6. Guidance
    BMA consults on first major overhaul of the DABA regime

    The BMA opened consultation on amendments to mandate wind-down plans, add capital/solvency and liquidity rule-making powers, and expand enforcement powers, the first significant general update to DABA since 2018.

    Walkers

  7. Guidance · official
    BMA issues Digital Asset Custody Code of Practice 2024

    The Code established baseline custody duties for DAB licensees ahead of the binding 2025 Custody Rules, reflecting heightened post-FTX regulatory focus on safeguarding client digital assets.

    Bermuda Monetary Authority

  8. Enforcement
    Bermuda Supreme Court orders winding-up of BlockFi International

    The court made a compulsory winding-up order against BlockFi International Ltd, a BMA Class F digital asset licensee, following its collapse, the most consequential failure of a Bermuda-licensed crypto firm.

    The Royal Gazette

  9. Decision
    Coinbase obtains a Class F digital asset business licence in Bermuda

    Coinbase Bermuda Ltd secured a full 'F' licence under DABA, validating Bermuda as an international hub for major crypto exchanges and prompting Coinbase to base international operations on the island.

    The Royal Gazette

  10. Incident
    BlockFi International placed into provisional liquidation in Bermuda

    BlockFi's Bermuda-licensed entity petitioned the Supreme Court for joint provisional liquidators amid FTX-related contagion, the first major stress test of Bermuda's DABA framework.

    The Royal Gazette

  11. Law · official
    Digital Asset Issuance Act 2020 (DAIA) comes into force

    The DAIA replaced the 2018 ICO legislation, moving oversight of token offerings under the BMA and requiring issuers to be authorised, appoint a local representative and publish an offering document.

    Bermuda Monetary Authority

  12. Law · official
    Digital Asset Business Act 2018 (DABA) comes into force

    Bermuda established one of the world's first dedicated digital asset/fintech licensing regimes, empowering the BMA to license payment service providers using digital assets, exchanges, custodians and lenders via Test, Modified and Full licenses.

    Government of Bermuda

  13. Law · official
    Digital Asset Business Act 2018 (DABA) establishes the licensing regime

    Bermuda enacted one of the world's first comprehensive digital asset business frameworks, creating BMA-supervised Test, Modified and Full licences and folding crypto activity into AML/ATF rules.

    Bermuda Monetary Authority

  14. Law
    Companies (Initial Coin Offering) Amendment Act 2018 takes effect

    Bermuda's first digital-asset law made ICOs/token sales a restricted business activity requiring Minister of Finance consent (advised by a FinTech Advisory Committee), launching the country's fintech legislative framework.

    Chambers and Partners

  15. Law · official
    ICO Act takes effect, launching Bermuda's crypto legal framework

    The Companies and Limited Liability Company (Initial Coin Offering) Amendment Act 2018 made ICOs a 'restricted activity' requiring ministerial consent and a filed offer document, Bermuda's first crypto-specific law.

    Government of Bermuda

Sources

  1. bma.bm/digital-assets-supervision-regulation
  2. bma.bm/digital-asset-business
  3. bma.bm/viewPDF/documents/2023-11-14-11-11-48-Digital-Asset-Business-Act-2018
  4. bma.bm/viewPDF/documents/2025-09-08-11-57-23-Guidance-Note---Digital-Asset-B
  5. cdn.bma.bm/documents/2025-05-02-10-46-26-Regulatory-Update-January---March-2025.
  6. globallegalinsights.com/practice-areas/blockchain-cryptocurrency-laws-and-regulations/bermuda
  7. lexology.com/library/detail.aspx?g=9f53fbd3-caf2-46f8-93f8-2513e939b85d
  8. practiceguides.chambers.com/practice-guides/blockchain-2025/bermuda/trends-and-developments
  9. applebyglobal.com/publications/bermuda-crypto-assets-in-trusts-and-foundations/
  10. bma.bm/viewPDF/documents/2025-02-03-10-45-22-Consultation-Paper---Call-for-P

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 8 Jul 2026. Methodology & how to cite · State of Technology Regulation 2026