Digital Payments & Fintech · Bermuda
Fintech & digital payments rules in Bermuda (2026)
Bermuda shaded by its digital payments & fintech status
Bermuda has clear, in-force licensing regimes administered by the Bermuda Monetary Authority: money service businesses are licensed under the Money Service Business Act 2016, and digital-asset/fintech firms under the pioneering Digital Asset Business Act 2018 (with T/M/F licence tiers) and Digital Asset Issuance Act 2020. The BMA is actively replacing the MSB Act with a modern, tiered Payment Services Act (consulted in 2025, advancing as of December 2025) to better capture digital wallets, e-money and platform-based payments, but that new statute is not yet in force.
Key points
The Bermuda Monetary Authority (BMA) is the single integrated supervisor for banking, money service business and digital asset business, and is the licensing/supervisory authority for all payments and fintech activity.
The Money Service Business Act 2016 establishes a licensing regime for any person providing money services (e.g. money transmission, payment services, bureau de change) in or from Bermuda, supported by a BMA Statement of Principles and Code of Practice; deposit-taking banks are exempt.
The Digital Asset Business Act 2018 created one of the world's first dedicated crypto-business regimes, offering Test (T), Modified (M) and Full (F) licences; the Digital Asset Issuance Act 2020 regulates token/ICO offerings. The regime remains active, with firms licensed through May 2026.
Following 2025 consultations, the BMA is advancing a Payment Services Act to replace the MSB Act with a tiered, risk-based regime across three categories — Digital Facility Providers, Payment-Handling Providers and Payment Technology Providers — covering digital wallets and back-end technology, with a one-year transition for existing MSBs.
Stablecoin issuers can elect to be licensed under the proposed Payment Services Act or the Digital Asset Business Act depending on their model, and the new PSA is slated to introduce an Artificial Intelligence Payments Hub to test programmable and AI-driven payments.
Bermuda has no dedicated open-banking mandate, domestic instant-payment rail, or specific buy-now-pay-later statute; such activities are addressed (if at all) through the general MSB/DAB licensing framework rather than bespoke rules, with the proposed PSA aimed at broadening coverage of modern payment models.
Timeline - major decisions & events
The Bermuda Monetary Authority issued a Digital Asset Business Act license to DerivaDEX (Deriva Bermuda Ltd), the first formal regulatory approval of a DAO-governed, non-custodial derivatives protocol, signalling Bermuda's willingness to license novel DeFi structures.
The Royal Gazette ↗The Authority published updated guidance clarifying expectations for entities applying for Test (T), Modified (M) and Full (F) DAB licenses, including business plan, governance, AML/ATF and 'mind and management' requirements.
Bermuda Monetary Authority ↗New rules mandate segregation of client assets, qualified custodians, surety bond/trust/indemnity protections and enhanced reconciliation and reporting, hardening investor protections under DABA following 2024 consultation.
Bermuda Monetary Authority ↗Final guidance set standards for DABA-licensed stablecoin issuers covering governance, asset backing, market-maker due diligence, attestations and stress testing, positioning Bermuda as a regulated stablecoin jurisdiction.
Bermuda Monetary Authority ↗The Code established baseline custody duties for DAB licensees ahead of the binding 2025 Custody Rules, reflecting heightened post-FTX regulatory focus on safeguarding client digital assets.
Bermuda Monetary Authority ↗Issued under s.6 of DABA (effective 30 June 2024), the Code requires board-level cyber governance, a three-lines-of-defence model, testing programs and 24-hour incident notification to the BMA for centralized exchanges, DeFi protocols and custodians.
Bermuda Monetary Authority ↗The DAIA moved oversight of public digital asset issuances from the Minister of Finance to the BMA with ongoing regulation, raising the 'public offering' threshold to 150 persons and requiring BMA-vetted business plans.
Bermuda Monetary Authority ↗Bermuda established one of the world's first dedicated digital asset/fintech licensing regimes, empowering the BMA to license payment service providers using digital assets, exchanges, custodians and lenders via Test, Modified and Full licenses.
Government of Bermuda ↗Bermuda's first digital-asset law made ICOs/token sales a restricted business activity requiring Minister of Finance consent (advised by a FinTech Advisory Committee), launching the country's fintech legislative framework.
Chambers and Partners ↗Bermuda - other topics
Last verified 5/25/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →