Discussion Paper - Asset Tokenisation (2025-11-05)

Summary

This is a Discussion Paper issued by the Bermuda Monetary Authority (BMA) seeking industry feedback on how asset tokenisation should be treated under Bermuda's regulatory framework. It is exploratory in nature, posing questions rather than imposing binding rules, and will inform a future Consultation Paper with more concrete proposals.

• Scope: Covers tokenisation of investments and investment funds, insurance products, real estate, precious metals, energy/environmental markets, DLT platforms, AML/CFT, conduct, cyber risk and financial stability considerations.
• Approach: Distinguishes between off-chain (digital twin) and on-chain (native token) tokenisation and examines whether Bermuda's existing principles-based Digital Asset Business Act and Investment Business Act regimes adequately capture these models.
• Purpose: Invites stakeholder views (via 80 consolidated questions) on regulatory gaps, dual regulation risk under DABA and IBA, custody, cross-border enforceability, insolvency treatment of token holders, and financial stability risks.
• Next steps: Feedback received will shape a subsequent Consultation Paper with targeted regulatory proposals; no rules are being finalised at this stage.

Because this is a discussion paper rather than a rule or guidance, it creates no immediate compliance obligations for regulated entities beyond the invitation to respond.

Key obligations

• Stakeholders wishing to provide input must submit feedback to fintech@bma.bm by close of business on 9 January 2026 (voluntary, not a compliance requirement).

Applies to

digital asset businesses, investment business licensees, investment funds and fund service providers, insurers and insurance intermediaries, entities engaged in tokenisation of real estate, precious metals, or environmental assets, DLT platform providers

Deadlines

• 9 January 2026: Deadline for industry and stakeholders to submit comments and feedback on the Discussion Paper to fintech@bma.bm.