Schedules - Digital Asset Business Account Rules

Summary

This document sets out the prescribed schedules to Bermuda's Digital Asset Business Account Rules: Schedule I is Form 1SFS, the Statutory Balance Sheet, together with line-by-line completion instructions, and Schedule II lists the notes that must accompany that balance sheet. It is a technical annex rather than a standalone rule creating new obligations beyond the underlying Account Rules, but it fixes the exact format and disclosures licensed undertakings must use when preparing statutory financial statements.

• Balance sheet form: Schedule I (Form 1SFS) prescribes a standardised statutory balance sheet layout covering cash, quoted and unquoted investments (including digital assets and digital assets to be issued), loans, receivables, sundry assets, liabilities including contractual liabilities from digital asset issuance, and stockholders equity.
• Line-item instructions: Detailed instructions specify how each balance sheet line must be valued and disclosed, including valuing licensed undertaking-generated digital assets at nil by default unless a valid cost model is approved by the Authority, disclosing encumbrances, valuation methods, and portions of liabilities payable in digital assets with unit value and fiat conversion rate.
• Required notes: Schedule II lists mandatory notes to the statutory balance sheet, covering licensee and shareholder controller information, governance and internal controls over digital assets, accounting policy summaries, revenue recognition basis, currency and exchange rate disclosures, liquidity and capital resources, fair value hierarchy (Level 1 to 3) breakdowns, maturity profiles, related-party transactions, contingencies and commitments, and subsequent events.

Because this is a schedule of forms and disclosure instructions rather than an operative rule with its own commencement or filing timetable, the text does not itself state a submission deadline; timing obligations sit in the main Digital Asset Business Account Rules that this schedule supports.

Key obligations

• Licensed undertakings must prepare their statutory balance sheet using the Form 1SFS layout set out in Schedule I
• Digital assets held must be disclosed at cost (quoted) or at cost with fair value disclosed in Schedule II (unquoted), including quantity and type of each digital asset held
• Licensed undertaking-generated digital assets not yet issued must be valued at nil unless the licensed undertaking has applied to and received approval from the Authority for a valid cost model
• Any encumbrance on cash, investments, or real estate must be disclosed, including amount, custodian and restrictive terms
• Portions of liabilities payable in digital assets must be disclosed with unit value and fiat conversion rate used
• Licensed undertakings must include the notes prescribed in Schedule II with their statutory balance sheet, covering governance and controls over digital assets, accounting policies, fair value hierarchy, related-party transactions, contingencies and subsequent events

Applies to

licensed undertakings conducting digital asset business