Virtual Currency Business (Prudential Standards) (Annual Return) Rules 2018

Summary

These Rules, made by the Bermuda Monetary Authority under the Virtual Currency Business Act 2018, set out the requirement for licensed virtual currency businesses to file an annual return with the Authority and specify exactly what information and supporting documents that return must contain.

• Annual return filing: A licensed undertaking must file an annual return with the Authority in accordance with section 7 of the Act, containing the matters set out in the Schedule as they stand at the time of filing.
• Supporting documents: The return must be accompanied by audited financial statements, a business plan for the next financial year, a certificate of compliance under section 66, and any other applicable rule or return required under section 7.
• Declaration: At the time of filing, the licensed undertaking must also file a signed declaration (by two directors, or a director and a senior executive) confirming the return is fair and accurate.
• Schedule content: Required information includes details on directors and officers, virtual currency services provided, organizational structure, business strategy, client account and balance data, geographic client profile, risk assessments, cyber security and private key storage policies, AML/CFT policies under the Proceeds of Crime Act, transaction volumes, outsourcing arrangements and service level agreements, and client asset protection arrangements under section 18.

The Rules do not specify a fixed calendar filing date; filing frequency is annual, tied to the licensed undertaking's financial year as defined in the Rules.

Key obligations

• A licensed undertaking must file an annual return with the Authority containing the matters set out in the Schedule, current as of the filing date
• The annual return must be accompanied by audited financial statements, a business plan for the next financial year, a certificate of compliance, and any other applicable rule or return required under section 7
• A signed declaration by two directors, or a director and a senior executive, confirming the accuracy of the return must be filed alongside the annual return
• The return must include, among other matters, details of directors and officers, business strategy, client account data, cyber security and key storage policies, AML policies, transaction volumes, and outsourcing arrangements as listed in the Schedule

Applies to

licensed undertakings (virtual currency businesses licensed under the Virtual Currency Business Act 2018)

Deadlines

• annually, aligned to the licensed undertaking's financial year: Annual return must be filed with the Authority each financial year; no specific calendar deadline is stated in the text

Related documents

• This document is made under Virtual Currency Business Act 2018