Notice - Conduct of Business Regulatory Regime - Digital Asset Business Act 2018 - Final Code of Practice (2023-04-04)

Summary

This BMA notice announces that the finalised Code of Practice under the Digital Asset Business Act 2018, addressing conduct of business and customer protection, has been issued following the October 2022 public consultation. It sets a compliance transition period for licensed digital asset businesses.

• Background: The Code of Practice was proposed for consultation in October 2022 to enhance client protection and best practices in Bermuda's digital asset business sector, and has now been finalised after review of feedback.
• Transition period: Licensees under the Digital Asset Business Act 2018 have six months from the date of the notice (4 April 2023) to become compliant with the finalised Code of Practice.
• Support: Firms with questions about implementing the Code of Practice are encouraged to contact their lead supervisor.

Key obligations

• Institutions licensed under the Digital Asset Business Act 2018 must become compliant with the finalised Code of Practice within six months of the notice's issue date (by on or around 4 October 2023).

Applies to

institutions licensed pursuant to the Digital Asset Business Act 2018, digital asset business licensees

Deadlines

• six months from 4 April 2023: Deadline for Digital Asset Business Act 2018 licensees to become compliant with the finalised Code of Practice.