The Bermuda Monetary Authority (BMA) released its latest regulatory framework for digital assets in October 2026, marking a significant step as the island continues to position itself as a global fintech hub.

The updated Digital Asset Act introduces clearer licensing requirements for token issuers, exchange operators, and custodial service providers. New provisions mandate that all digital asset businesses obtain a BMA license unless they are already regulated under the existing Securities Act. The act also tightens anti‑money‑laundering (AML) and counter‑terrorist financing (CTF) obligations, requiring real‑time transaction monitoring and the use of a dedicated compliance officer.

Tax treatment of digital assets has been clarified, with capital gains from token sales treated as taxable income for individuals and corporations, while certain asset‑backed tokens may qualify for preferential rates under the island’s existing tax regime. The BMA also outlined a framework for cross‑border data residency, ensuring that local digital asset custodians can store customer data within Bermuda’s jurisdiction.

Industry analysts say the update will attract more global digital asset firms to the island while aligning Bermuda with international best practices. The BMA plans to host a series of stakeholder workshops in the coming months to help businesses navigate the new rules.

The move underscores Bermuda’s commitment to balancing innovation with regulatory oversight as the digital asset market matures.