Steps being undertaken to amend the Digital Asset Business Act 2018 in Bermuda

An enhancement of the digital asset regulatory framework in Bermuda is being sought through a Consultation Paper that outlines the proposed changes to the country’s current Digital Asset Business Act, 2018. The amendments put forward in the Consultation Paper seeks to give “greater clarity to certain sections and to make other changes that are intended to facilitate the development of the FinTech sector in Bermuda and a more effective administration of the Act”.

 The Consultation Paper notes that the primary intended amendments to the Digital Asset Business Amendment Act, 2020 (Bill) will: 1) amend some definitions to clarify the Bermuda Monetary Authority’s (BMA’s) intent in certain sections; 2) insert a requirement to notify the BMA of changes to exemption conditions; 3) extend the Authority’s ability to modify applicable fees and 4) establish a new testing licence to be called a Class T licence, which will facilitate the testing and piloting of a business model, product or service within the FinTech regulatory framework.

The consultation period for the submission of views on the proposals set out in the paper and Bill will conclude on September 7th, 2020 at which time further steps would be taken. The Consultation Paper for the Digital Asset Business Amendment Act, 2020 can be found here.