Digital Asset Business Exemption Order 2023 (BR 66 / 2023)

Summary

This Order, made under the Digital Asset Business Act 2018, creates two categories of exemption from the requirement to hold a digital asset business licence: specified persons (listed in Schedule I) who are automatically exempt, and non-specified persons (listed in Schedule II) who must notify the Bermuda Monetary Authority and maintain their exempt status through ongoing filings.

• Specified persons (Schedule I): The Authority, the Government of Bermuda and any entity it owns, and any public authority are automatically exempt from the licensing prohibition in section 10 of the Act, with no notification required.
• Non-specified persons (Schedule II): Includes providers of affinity or rewards programmes with non-redeemable value, game publishers issuing in-game value usable only within their own games or platforms, providers of data storage or security services who are not otherwise engaged in digital asset business on behalf of others, undertakings conducting digital asset activity solely for their own or a group undertaking's business operations, and investment funds that have appointed a licensed or recognised investment manager.
• Notification duty: Every non-specified person must notify the Authority of its intention to rely on the exemption, in a form and with supporting information as the Authority directs.
• Annual declaration: Non-specified persons that continue to qualify for exemption must file an annual declaration confirming continued eligibility, on or before 31 March each year, signed by a director and in the form and with the information the Authority determines.

The Order took effect on its operative date of 23 June 2023 and remains in force, defining the ongoing compliance path for entities seeking to operate without a digital asset business licence in Bermuda.

Key obligations

• Every non-specified person must notify the Bermuda Monetary Authority of its intention to be exempt from the licensing requirement under section 10 of the Digital Asset Business Act 2018, in the form and with the information the Authority directs.
• Every non-specified person that continues to qualify for exemption must file an annual declaration with the Authority on or before 31 March each year stating that it continues to qualify.
• The annual declaration must be signed by a director of the non-specified person and be in the form and contain the information and documents the Authority determines.

Applies to

specified persons (Bermuda Monetary Authority, Government of Bermuda and its entities, public authorities), non-specified persons (affinity or rewards programme providers, game publishers, data storage or security service providers, group undertakings conducting digital asset activity for internal business operations, investment funds with a licensed or authorised investment manager), digital asset business entities seeking exemption from licensing under the Digital Asset Business Act 2018

Deadlines

• on or before 31 March in every year: Non-specified persons that continue to qualify for exemption must file an annual declaration with the Authority confirming continued eligibility.
• 23 June 2023: Operative date of the Order.

Related documents

• This document commences Digital Asset Business Act 2018
• This document is made under Digital Asset Business Act 2018