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
24 Sep 2021

Appleby Jersey release first Community Partnership podcast

The aim of this series of Community Partnership podcasts is to promote mental health awareness, spec...

23 Sep 2021 | Deals

Appleby acts as Cayman Islands counsel in Caesers Entertainment’s acquisition of William Hill

Appleby Cayman acted as Cayman Islands counsel to the lead arrangers in connection with credit facil...

21 Sep 2021 | Deals

Appleby advises joint lead managers on £400 million sustainability bond issue by the Isle of Man Government

Appleby has advised the joint lead managers, including among others, HSBC and Santander on the Isle ...

Contributors: Kyle Sutherland
13 Sep 2021

Cayman Private Fund Annual Return and Related Fund Entity Deadlines Extended (Final Extension)

The Cayman Islands Monetary Authority issued a notice on 10 September 2021 advising that the filing ...

13 Sep 2021 | News

Bank Recovery and Resolution: Progress

The Jersey Financial Services Commission (JFSC) announced on 10th September 2021 that it has been as...

Contributors: Andrew Weaver
7 Sep 2021 | Deals

Appleby Mauritius advises IFC in connection with the financing package provided to Aspen Finance Proprietary Limited

Appleby Mauritius advises IFC in this cross border transaction in connection with the financing pack...

Contributors: Manisha Lallah
7 Sep 2021 | News

Appleby’s Hong Kong Office shortlisted for “Best Offshore Law Firm” at the HFM Asia Service Awards 2021      

The awards celebrate providers of services and solutions to the Asian hedge fund industry.

3 Sep 2021

Appleby Mauritius advises OMERS Infrastructure on acquisition of 19.4% stake in India’s Azure Power

Leading offshore law firm, Appleby, has acted as Mauritius legal counsel to OMERS Infrastructure  i...

Contributors: Manisha Lallah
2 Sep 2021 | News

Three Appleby Lawyers shortlisted for Citywealth Lawyer of the Year awards

Appleby partners Garry Manley and Olwyn Barry have been shortlisted for the “IFC Lawyer of the yea...

Contributors: Olwyn Barry, Esmond Brown
31 Aug 2021 | News

Mauritius: Amendments to immigration laws to promote investment and increase access to non-citizens

The Finance (Miscellaneous Provisions) Act 2021, gazetted on 5 August 2021, has brought some changes...