Bitcoin and Cryptocurrency Regulation in Bermuda

Yes. Owning, buying, selling, and using cryptocurrency is legal for individuals and businesses in Bermuda. There is no ban on holding bitcoin or other digital assets. What Bermuda regulates is the business of dealing in digital assets: companies that carry on "digital asset business" in or from within Bermuda must be licensed by the Bermuda Monetary Authority under the Digital Asset Business Act 2018.

Cryptocurrency is not legal tender in Bermuda; the Bermudian dollar (pegged to the US dollar) remains the official currency. Bermuda has explored bringing more of its economy on-chain through stablecoin pilots, but as of 2026 there is no mandate forcing anyone to accept or use crypto. For broader background, see our overview of crypto regulation.

The Bermuda Monetary Authority (BMA) is the integrated regulator for financial services in Bermuda, including banking, insurance, investment business, and digital asset business. The BMA administers and enforces the Digital Asset Business Act 2018, issues licences, publishes codes of practice and rules, and supervises licensed firms on a prudential and conduct basis.

The BMA maintains an Innovation Hub for testing emerging technology and has run initiatives such as inviting proposals for pilot decentralised finance (DeFi) projects to explore supervisory approaches. You can read directly about the regime on the BMA's Digital Asset Business and Digital Assets Supervision and Regulation pages.

The core statute is the Digital Asset Business Act 2018 (DABA), which came into force on 10 September 2018 and made Bermuda one of the first jurisdictions to create a purpose-built digital asset business regime. The BMA's framework is built out through subordinate rules and codes, which have been expanded in 2023 to 2025. Notable instruments include:

• Digital Asset Business Act 2018 (the primary law)
• Digital Asset Business Code of Practice (updated February 2024)
• Digital Asset Custody Code of Practice (2024)
• Cyber Risk Rules 2023 and the Operational Cyber Risk Management Code of Practice
• Digital Asset Business (Custody of Client Assets) Rules 2025, in force from February 2025
• Single Currency Pegged Stablecoin (SCPS) Guidance, issued November 2024

The official text of the Act is published by the Government of Bermuda and the BMA. Always confirm the current consolidated version, because rules and codes are updated regularly.

Under DABA, a company that conducts digital asset business in or from within Bermuda must hold a licence from the BMA. "Digital asset business" covers a broad set of activities, including issuing, selling or redeeming digital assets; operating a digital asset exchange; operating as a payment service provider using digital assets; providing custodial wallet services; operating a digital asset derivative exchange; digital asset benchmark administration; and digital asset lending or related services.

The BMA offers three licence classes:

• Class T (Test) licence for early-stage firms testing a proof of concept in a controlled, sandbox-style environment.
• Class M (Modified) licence for firms operating with conditions for a limited period, often as a step toward a full licence.
• Class F (Full) licence for established firms providing the full range of digital asset business activities.

Applicants must meet requirements on fit-and-proper persons, governance, capital and prudential standards, cyber risk, client-asset safeguarding, and anti-money laundering. The exact obligations depend on the activity and licence class. Firms outside Bermuda that target Bermuda from abroad can still fall within scope, so legal advice on the perimeter is essential.

Bermuda is a no-direct-tax jurisdiction. It imposes no personal income tax, no capital gains tax, no withholding tax, and no tax on dividends or interest. As a general matter there are no income, capital gains, or withholding taxes imposed in Bermuda on digital assets or on transactions involving them, which is a major reason crypto investors and businesses are drawn to the island.

Two points to keep in mind. First, Bermuda still applies payroll tax and social-insurance contributions in respect of employees, plus customs duties and certain other levies, so operating a business is not cost-free. Second, Bermuda introduced a 15% corporate income tax that took effect from 1 January 2025, but it applies only to large multinational enterprise groups with annual revenue above 750 million euros, in line with the OECD global minimum tax. Most individuals and smaller businesses are outside its scope. Your home country may still tax your crypto regardless of Bermuda's rules; see our guide to crypto taxes and consult a tax adviser.

Licensed digital asset businesses are treated as regulated financial institutions for anti-money laundering and anti-terrorist-financing (AML/ATF) purposes. The Digital Asset Business Act amended Bermuda's AML laws to bring DABA licensees within the scope of the Proceeds of Crime Act 1997, the Anti-Terrorism (Financial and Other Measures) Act 2004, and the related Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations.

In practice this means licensed firms must perform customer due diligence (identity verification, or KYC), conduct ongoing monitoring, keep records, file suspicious activity reports, appoint compliance officers, and maintain internal controls and risk assessments. These obligations sit alongside Bermuda's commitments as a member of the international AML framework and are supervised by the BMA. Individuals using a licensed exchange should expect standard identity checks.

For an ordinary user in Bermuda, there is no legal barrier to buying, holding, or spending cryptocurrency. Most residents access crypto through international exchanges, and a growing number of local merchants have experimented with accepting digital payments, particularly the USDC stablecoin during government and industry pilots. Bermuda has also positioned itself as a home for regulated crypto firms, so some services may be offered by BMA-licensed providers.

When choosing a platform, prefer providers that are regulated (in Bermuda under DABA, or in another reputable jurisdiction), apply standard KYC, and publish clear terms on custody and withdrawals. Self-custody of your private keys remains legal and is often the safest option for long-term holdings. For a primer on the rules landscape generally, see our regulation hub.

There is no specific statute in Bermuda that singles out crypto or bitcoin ATMs by name. Instead, an operator that runs an ATM as part of a business of exchanging digital assets for fiat (or vice versa), or providing related payment or custodial services, would generally be carrying on "digital asset business" and could require a BMA licence under DABA, along with AML/KYC compliance.

Bermuda is a small market, so the availability of physical crypto ATMs is limited and can change. If you plan to operate one, treat it as a regulated activity and confirm the licensing position with the BMA before launching. If you are simply a user, be aware that crypto ATM transactions tend to carry high fees and are a common vector for scams.

Bermuda does not have a dedicated cryptocurrency mining law, and mining as a personal or business activity is not prohibited. There is no special licence required merely to mine. However, mining at any meaningful scale faces practical constraints on the island: electricity is relatively expensive and largely imported, land and cooling are limited, and importing mining hardware is subject to customs duties.

Where mining is combined with other regulated activity (for example, operating a pool that also exchanges or custodies assets for clients), that surrounding activity could bring a business within DABA's perimeter. Because Bermuda has not published mining-specific guidance, anyone planning a commercial operation should seek local legal and tax advice and confirm energy and import costs.

Bermuda has continued to iterate on its framework rather than overhaul it:

• Stablecoin guidance (November 2024): the BMA issued Single Currency Pegged Stablecoin (SCPS) Guidance setting expectations on full reserve backing in high-quality liquid assets, independent monthly attestations, redemption rights, governance, and operational resilience.
• Custody of Client Assets Rules 2025 (in force February 2025): mandatory segregation of client assets, limits on pooling without client consent, and stricter due diligence on third-party custodians and intermediaries.
• On-chain economy ambitions (January 2026): on 19 January 2026, at the World Economic Forum annual meeting in Davos, the Government of Bermuda announced plans, with support from Circle and Coinbase, to become the world's first fully on-chain national economy using the USDC stablecoin, through government and institutional pilots rather than any mandate or forced adoption. See the official announcement.
• Payments reform: the BMA published a Payment Service Provider regulatory framework discussion paper in April 2025, working toward a new Payment Services Act to replace the Money Services Business Act 2016.
• Operational resilience: the BMA consulted on an Operational Resilience and Outsourcing Code, with firms expected to comply by 2028.

Because the rules move quickly, treat dates and details here as a starting point and verify the latest position with the BMA.

Bermuda's licensing regime is designed to raise standards for firms operating from the island, including rules on client-asset segregation, cyber risk, and stablecoin reserves. That offers more comfort than dealing with a wholly unregulated provider, but it does not eliminate risk. Crypto prices are volatile, transactions are generally irreversible, and a BMA licence is not a guarantee against losses or business failure.

Practical precautions: confirm whether a provider is actually licensed (do not rely on marketing claims), read the terms on custody and withdrawals, be alert to investment scams and fake platforms, enable strong security on your accounts, and consider self-custody for significant holdings. If something looks like a guaranteed-return scheme, treat it as a likely fraud.

This guide is a summary. For authoritative, current information always go to the primary sources:

• Bermuda Monetary Authority - Digital Asset Business (the regulator's main DAB page, with codes, rules, and guidance)
• Bermuda Monetary Authority - Digital Assets Supervision and Regulation
• Government of Bermuda - Digital Asset Business Act 2018 (the statute)

This page is general information current as of 2026 and is not legal or tax advice. Rules change and your situation may differ, so verify the current position with the Bermuda Monetary Authority and a qualified Bermuda lawyer or tax adviser before acting.

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