Country overview

#38
Bermuda

Country stats

Rating Points
260
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
7.1%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
22
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
160
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
4 473
Total amount of crypto users out of the country's total population based on public data.
Taxation points
47
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
33
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
No info
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Safe place
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
No data
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Complete
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Cryptofund
This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.
ICO/STO
This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.
Good
Medium
Bad
intro

Bermuda has an advanced crypto regulation framework and a tax-free jurisdiction. However, it is small in the local crypto market.

Security level
Crypto Payments

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.

Crypto Salaries

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.

Legal

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.”

Taxation
Tax nameIndex
PIT tax Min0
PIT tax Max0
Corporate tax (CIT)0
Min Individual CGT (for crypto)0
Max Individual CGT (for crypto)0
Wealth tax Min0
Wealth tax Max0

Based on Carey Olsen's overview (9), no income, capital gains, withholding, or other taxes are imposed in Bermuda on digital assets or any transactions involving them.