Bermuda has an advanced crypto regulation framework and a tax-free jurisdiction. However, it is small in the local crypto market.
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Bermuda has an advanced crypto regulation framework and a tax-free jurisdiction. However, it is small in the local crypto market.
Bermuda is a safe place with a security level in our rating. It has a Numbeo crime rating (1). The homicide level (2) is 6.8 per 100,000 inhabitants a year.
Based on Carey Olsen's review, “there are no Bermudian laws, regulations or other restrictions governing the participation of persons resident or situated in Bermuda in the purchase, holding or sale of digital assets, unless such digital assets represent an interest in a security in a Bermuda company.” This probably means there are no crypto payment regulations in Bermuda either. Please get in touch with us if you have information about it.
We need to find out about any legal acts regulating crypto salaries in Bermuda. Please, contact with us if you have any feedback on this topic.
Bermuda is a British Overseas Territory and a popular jurisdiction for offshore companies. Bermuda Monetary Authority is the primary crypto regulator in the country, which provides licensing procedures. Based on the BMA website (3) “The Digital Asset Business Act 2018 (the Act) is the statutory basis for regulating Digital Asset Business (DAB) in Bermuda”.
Based on the regulator’s website, BMA provides licensing procedures for the following crypto operations:
-issuing, selling, or redeeming virtual coins, tokens, or any other form of digital assets
-operating as a payment service provider business utilizing digital assets
-includes the provision of services for the transfer of funds
-operating as an electronic exchange
-providing custodial wallet services
-operating as a digital assets services vendor
All digital asset businesses operating in Bermuda should register (4) with the BMA and comply with strict anti-money laundering and anti-terrorism financing laws. Coinbase Bermuda has received (5) a cryptocurrency license from the Bermuda Monetary Authority (BMA). Jewel Bank has also been granted (6) a full bank and digital asset business license from BMA, and it’s the first crypto banking license in the country. Moreover, some crypto entities get licenses based on the Innovative Insurance (IIGB) category.
According to Carey Olsen's overview (7), crypto funds may be licensed and regulated in Bermuda based on the Investment Funds Act 2006. In 2023, according to Mondaq (8), Bermuda imposed a new category of licensed crypto entities - “digital asset lending or digital asset borrowing or digital asset repurchase transactions services providers.”
In October 2024 Bermuda Monetary Authority has issued consultation paper (9) to upgrade Digital Assets Business Act (2018). Ongoing regulation updates include introduction of new term "control of assets", increasing reporting and licensing requirements, system of fines for non-compliance. As for November 2024 list (10) of registered digital asset businesses includes 34 companies including Payward, Coinbase, Circle, BlockFi, Bittrex Global.
Tax name | Index |
PIT tax Min | 0 |
PIT tax Max | 0 |
Corporate tax (CIT) | 0 |
Min Individual CGT (for crypto) | 0 |
Max Individual CGT (for crypto) | 0 |
Wealth tax Min | 0 |
Wealth tax Max | 0 |
Based on Carey Olsen's overview (7), no income, capital gains, withholding, or other taxes are imposed in Bermuda on digital assets or any transactions involving them.
1)Crime Index by Country 2023 Mid-Year
2)List of countries by intentional homicide rate
4)Can the Bermuda Monetary Authority Set an Example for Global Crypto Regulators? Article
5)Coinbase receives a Bermuda license to launch an offshore exchange. Article
7)A guide to blockchain and cryptocurrency regulation 2024: Bermuda (GLI chapter). Article
8)Mondaq. Bermuda: Digital Asset Business Act. Article
9)BMA Consultation Paper
10)BMA. Regulated Entities. Digital Asset Business
Last update: November 2024