Consultation - Proposed Amendments to the Digital Asset Business Act 2018 and the Digital Asset Business (Prudential Standards) (Annual Return) Rules 2018

In recent years, the local and international digital asset business (DAB) sector has experienced rapid growth and evolution, as is evident through the development of new and innovative solutions and business models. As such, Bermuda’s regulatory and supervisory framework must keep pace with the dynamic nature of this market. In a continued effort to strengthen the legislative and regulatory framework for DABs and support responsible innovation, the Bermuda Monetary Authority (Authority or BMA) is proposing amendments to the Digital Asset Business Act 2018 (DABA or the Act) and the Digital Asset Business (Prudential Standards) (Annual Return) Rules 2018 (the Rules). The proposed updates aim to ensure that Bermuda's legislative and regulatory framework for digital assets remains pertinent and effective in this rapidly changing business environment.