Bermuda successfully launched the Digital Asset Business Act (DABA) in 2018 which established the foundation for a comprehensive legislative and regulatory framework designed to support and facilitate growth in the financial technology (Fintech) sector. The digital asset business regulatory regime was updated in 2020 to provide clarity around digital asset exchanges and derivative exchange providers as well as to introduce an additional class of licence allowing applicants to select from these licence categories:
- class F licence under which a person will be licensed to provide any or all of the digital asset business activities under the definition of digital asset business;
- class M licence, under which a person will be licensed to provide any or all of the digital asset business activities under the definition of digital asset business for a defined period determined by the Authority; or
- class T licence, under which a person will be licensed to provide any digital asset business activity under the definition of digital asset business, for a defined period determined by the Authority and for the purpose of carrying out pilot or beta testing in relation to such activity.
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