Cryptocurrency is legal in Bermuda, which has established itself as a global leader in digital asset regulation since 2018. The Digital Asset Business Act provides a comprehensive regulatory framework specifically designed to offer legal and regulatory certainty to industry participants while ensuring business is conducted according to the highest international standards (1). Firms conducting digital asset business are regulated by the Bermuda Monetary Authority, which oversees licensing requirements for various cryptocurrency-related activities including issuing tokens, operating exchanges, and providing custodial wallet services.
The government has actively promoted cryptocurrency innovation through strategic initiatives aimed at economic diversification and job creation. Bermuda introduced one of the world's first digital asset business bank licensing regimes and developed a three-tier licensing model comprising Class T for testing, Class M for modified operations, and Class F for full-scale businesses (1). This sandbox approach facilitates the transition from start-ups to mature financial institutions while maintaining regulatory oversight and compliance with anti-money laundering requirements.
"The Digital Asset Business Act is designed to provide regulatory certainty, consumer confidence, and compliance, and to make sure Bermuda maintains its position as a premier jurisdiction for the advancement of digital assets."
Under the regulatory framework, any entity operating in or from Bermuda that conducts digital asset business activities must obtain appropriate licensing from the Bermuda Monetary Authority and maintain a physical presence on the island. The government has developed regulations to standardize activities of firms using Distributed Ledger Technology to store or transmit value belonging to others, including virtual currency exchanges and tokenized securities (2). Bermuda continues to refine its digital asset regulations through ongoing consultations with industry stakeholders to ensure the framework remains effective and meets international standards.
Source:
https://www.bda.bm/wp-content/uploads/2021/08/BDA-Digitial-Assets-Overview.pdf
https://www.gov.bm/articles/government-cryptocurrency-initiative
Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
