The Bermuda Monetary Authority (BMA) recognizes the importance of actively monitoring its laws and regulations to ensure harmony with the undertakings which it regulates. As such, the BMA issued guidance on 8 June 2021 relating to the Digital Asset Business (DAB) sector in Bermuda, and more specifically, (i) helpful FAQs on the Digital Asset Business Act 2018 (DABA), (ii) guidance on the head office requirements under DABA, and (iii) guidance on the expected product due diligence to be conducted under DABA (collectively, the Guidance). The BMA’s commitment to providing a comprehensive framework and working with industry to ensure Bermuda’s Fintech sector continues to thrive has been further solidified by their recent development of the May 2021 Guidance. Not only is this Guidance beneficial to existing licensed undertakings, by providing clarity on their ongoing requirements and any potential future changes to their DAB License, but it provides transparency on how the BMA will assess prospective applicants and the requirements of each Class of DAB License in a very clear and easy to understand format.

The May 2021 Guidance sets out the key factors that the BMA will take into account when evaluating compliance with the head office requirement under DABA. It is reassuring to know that the BMA will take into account the nature, scale, complexity and risk profile of a licensed undertaking in this regard when assessing whether a DAB complies with this requirement.  Contained within the Guidance is information on how a licensed undertaking should evaluate product due diligence, whether there is a material change to, or introduction of a new product, or a modification to an existing product. It is clear that the BMA will take a prescriptive approach to evaluating the introduction of new products or material changes to products that have been previously vetted and approved.

The May 2021 Guidance provides valuable insight into how the BMA will tackle key components in the life cycle of a licensed undertaking in Bermuda. See below to access the BMA’s Digital Asset Business webpage and to view the recent Guidance.

Please reach out to a member of our Technology & Innovation team to discuss the Digital Asset Business Act 2018 and these most recent Guidance notes.

Share
Twitter LinkedIn Email Save as PDF
More News
21 Jun 2021 | News

The BETAMAX Case: the Aftermath

Betamax applied to the Judicial Committee of the Privy Council (the Privy Council) against the decis...

15 Jun 2021 | News

Surge in interest from high net-worth individuals applying to relocate to Jersey

For existing residents, it is already well-known that Jersey has a great deal to offer in terms of a...

Contributors: Jonathan Anderson
11 Jun 2021 | News

Appleby And AGS To Sponsor And Speak On ESG And LATAM Panels At Bermuda Captive Conference

Appleby and Appleby Global Services (AGS) are pleased to once again sponsor the annual Bermuda Capti...

Contributors: Eduardo Fox
9 Jun 2021 | News

Appleby’s Hong Kong office strengthens and expands its corporate team by welcoming investment funds specialist Marc Parrott as partner

Appleby welcomes Marc Parrott as Partner to lead the office’s Investment Funds practice.

7 Jun 2021

Appleby partners with CIFC in ‘CLO Initiative for Change’

Appleby’s CLO team in the Cayman Islands is proud to announce its partnership with CIFC Asset Mana...

1 Jun 2021 | News

Appleby advise Advanz Pharma on completion of USD846 million take private by Nordic Capital

Leading offshore law firm Appleby acted as Jersey counsel to ADVANZ PHARMA in connection with its sa...

27 May 2021 | News

Pakistan International Airlines secures discharge of receivers in $6bn dispute

On 25 May 2021 the Commercial Division of the Eastern Caribbean Supreme Court set aside ex-parte ord...

27 May 2021 | News

Appleby And AGS Bermuda Featured As Sponsors And Speakers At International Trusts Conference

Appleby and Appleby Global Services (AGS) are pleased to once again sponsor the Transcontinental Tru...

Contributors: Caljonah Smith
27 May 2021 | Deals

Appleby advises Tritax on the GBP 90 million acquisition of a state of the art distribution unit in Avonmouth

Leading offshore law firm Appleby advised Tritax Big Box REIT plc on the GBP 90 million acquisition ...