In order to keep pace with this rapidly evolving sector, the 2020 Amendments were introduced after thorough consultation with Fintech industry participants and result in the introduction of a new class of licence to facilitate pilot and beta phase product development and testing (Class T Licence), as well as greater clarity around defined terms and the application of DABA by the Bermuda Monetary Authority (BMA).  The 2020 Amendments include, but are not limited to:

(i) Introduction of a new Class T Licence;

(ii) Clarifying the definitions of Digital Asset Exchange and Digital Asset Derivative Exchange; and

(iii) Extending the BMA’s ability to modify applicable fees.

A Class T License will allow Bermuda’s digital asset business regime to support and foster all stages of innovation in the evolving digital asset business sector. The purpose of the Class T Licence is to promote the pilot or beta phase testing of a minimum viable product/service. It is proposed that applicants must: (i) develop success criterion for the test, (ii) list their pre-identified or targeted customers or counterparties, (iii) hold a minimum capital of at least $10,000, and (iv) ensure that appropriate risk disclosures for potential counterparties are in place.

The 2020 Amendments have also included consideration for the passing of the Digital Asset Issuance Act 2020, on 6 May 2020, whereby the BMA’s authority was extended to create rules prescribing prudential standards in relation to the accreditation of digital asset business.

Please reach out to your usual Appleby contact or a member of the team below if you have any questions or would like any further information.

Key contacts

Matthew Ebbs-Brewer

Partner, Head of Funds & Investment Services: Bermuda

T +1 441 298 3226
E Email Matthew

Kit Cunningham

Associate: Bermuda

T +1 441 298 3527
E Email Kit

Share
Twitter LinkedIn Email Save as PDF
More News
14 Jan 2022 | News

Bermuda amends Insurance Act to introduce concept of internationally active insurance group

The Insurance Amendment Act 2021 (Act) is the result of the Bermuda Monetary Authority’s (BMA) con...

5 Jan 2022 | News

Bermuda Economic Substance Regulatory Update

In response to work conducted by the European Union’s Code of Conduct Group regarding the tax poli...

20 Dec 2021 | News

Appleby Makes Annual Holiday Donation To Bermuda Star Charity

Appleby’s Bermuda office delivered holiday donations to local charity STAR (Supportive Therapy for...

7 Dec 2021 | News

Appleby Named Official Law Firm Of The Bermuda Sail Grand Prix

Leading offshore law firm Appleby is the Official Law Firm of the Bermuda Sail Grand Prix presented ...

7 Dec 2021 | News

Appleby Bermuda Hires Two New Corporate Lawyers

Leading offshore law firm Appleby is delighted to welcome Katie Blundy and Carl Meyer to its Bermuda...

Contributors: Katie Blundy, Carl Meyer
9 Nov 2021 | News

Two Pupils Join Appleby Bermuda Trainee Programme

Appleby would like to welcome Karim Creary and Kiara Wilkinson to its two-year legal trainee program...

5 Nov 2021 | News

Arielle Desilva Is Called To The Bemuda Bar

Appleby is delighted to announce that Arielle DeSilva was called to the Bermuda Bar on Friday 5 Nove...

29 Oct 2021 | News

Melissa Rodrigues McBeath recognized as a 2021 Rising Star by The Bermudian Magazine

The Bermudian’s 2021 crop of Rising Stars is an impressive group of young people with limitless pa...

26 Oct 2021 | News

Kaisha Wilson Is Called To The Bermuda Bar

Appleby is delighted to announce that Kaisha Wilson was called to the Bermuda Bar on Friday 15 Octob...