Appendix 4: Bermuda

Highlights

• Bermuda is a low-tax jurisdiction, and does not levy specific taxes on income, capital gains, or other taxes related to digital assets or transactions involving them.
• In 2018, Bermuda introduced two pieces of legislation that regulate licensing and other requirements for businesses handling digital assets and ICOs: the Digital Asset Business Act (DAB Act) and the Companies and Limited Liability Company (Initial Coin Offering) Amendment Act 2018 (ICO Act).
• Under the DAB Act, licensed businesses holding custody of client digital assets must segregate those client assets from the business’s own accounts, as well as maintain either a surety bond, a trust account maintained by a qualified custodian, or sufficient insurance approved by the Bermuda Monetary Authority.

Virtual Currency-Specific Regulations

• Government of Bermuda, Digital Asset Business Act 2018
• Bermuda Monetary Authority, Digital Asset Custody Code of Practice (May 2019)
• Bermuda Monetary Authority, Digital Asset Business Statement of Principles (Sept. 2018)
• Bermuda Monetary Authority, Annex VIII- AML-ATF Sector Specific Guidance Notes for Digital Assets (Sept. 2018)
• Bermuda Monetary Authority, Digital Asset Business Code of Practice (Sept. 2018)
• Bermuda Monetary Authority, Assessment and Licensing Committee (ALC) Digital Asset Business Application Process (Sept. 2018)

Nonprofit Regulations

• Government of Bermuda, Charities Act 2014
  • Government of Bermuda, Charities Amendment Act 2018

Tax Regulations

• Government of Bermuda, Office of the Tax Commissioner
• Government of Bermuda, Types of Taxes in Bermuda

Anti-Money Laundering Regulations

• Government of Bermuda Ministry of Home Affairs, Guidance on the Charities (Anti-Money Laundering, Anti-Terrorist Financing and Reporting) Regulations 2014 (March 2018)
• Government of Bermuda, Charities (Anti-Money Laundering, Anti-Terrorist Financing and Reporting) Regulations 2014
• Bermuda Monetary Authority, Annex VIII- AML-ATF Sector Specific Guidance Notes for Digital Assets (Sept. 2018)

Other Relevant Regulations, Sources, Notes

• Bermuda Laws Online (amended up to Oct. 2 2019)
• Law Library of Congress, Regulatory Approaches to Cryptoassets in Selected Jurisdictions: Bermuda (April 2019)