Establishing a Digital Asset Business in Bermuda in 2025
Bermuda has emerged as a premier destination for digital asset businesses, offering a strategic blend of innovation, regulatory clarity, and international credibility. With its stable political and legal environment, the island provides an ideal setting for fintech ventures seeking to launch or scale digital asset operations. Bermuda’s commitment to maintaining high regulatory standards has attracted a diverse range of companies involved in blockchain technology, crypto trading, and tokenized finance.
At the heart of this ecosystem is the Bermuda Monetary Authority (BMA), which administers the Digital Asset Business Act 2018—a dedicated legislative framework that supports responsible growth in the digital asset sector. By implementing a flexible, tiered licensing regime and clear supervisory expectations, the BMA has fostered an environment where innovation and regulatory accountability can coexist. This has solidified Bermuda’s position as a trusted global hub for digital asset businesses seeking both credibility and opportunity.
In this article, the SALVUS Crypto-Assets Licensing team delves into the benefits of obtaining a Digital Asset Business License in Bermuda and the different categories of licenses available, expanding on the below:
1. Why obtain a Digital Asset Business License in Bermuda?
2. License Categories & Authorized Activities
3. Regulatory Capital Requirements
4. Licensing Timeframe
5. How SALVUS can support your licensing application?
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1. Why obtain a Digital Asset Business License in Bermuda?
Establishing a digital asset business in Bermuda offers firms the advantage of operating within a robust, transparent, and progressive regulatory framework overseen by the Bermuda Monetary Authority (BMA). The jurisdiction’s Digital Asset Business Act 2018 provides legal clarity for a wide range of activities, including exchanges, custodial services, and token issuance. With a three-tier licensing regime, Bermuda allows businesses to launch in phases—from testing concepts to full-scale operations—enabling flexible market entry. The BMA enforces high standards in governance, cybersecurity, and client asset protection, fostering trust with investors and counterparties. Additionally, Bermuda’s legal infrastructure supports innovation while ensuring global compliance alignment.
Firms also benefit from Bermuda’s strong emphasis on regulatory certainty and risk-based supervision, backed by detailed rules on capital adequacy, client disclosures, and internal controls. The BMA encourages responsible innovation through guidance on emerging models such as stablecoins and custody structures. Businesses must demonstrate a physical presence and adhere to rigorous oversight, which enhances the jurisdiction’s reputation as a serious and credible financial center. With well-defined codes of practice and a commitment to international standards, Bermuda is positioned as a leading choice for digital asset service providers.
2. License Categories & Authorized Activities
The Bermuda Monetary Authority (BMA) offers three categories of licenses for digital asset businesses, each corresponding to specific activities permitted under the Digital Asset Business Act 2018. These licenses are designed to accommodate entities at different stages of development and operational readiness.
The table below outlines the specific authorized activities available under each category:
| License Category | Authorised Activities |
|---|---|
| Test “T” License | For those seeking to test their proof of concept |
| Modified “M” License | For those seeking to expand operations for a limited period |
| Full “F” License | For companies seeking to provide any or all of the following DAB activities: (i) Issuing, selling, or redeeming virtual coins, tokens, or any other form of digital asset; (ii) Operating as a payment service provider business utilizing digital assets, which includes the provision of services for the transfer of funds; (iii) Operating as a digital asset exchange (iv) Operating as a digital asset trust services (v) Providing custodial wallet services (vi) Operating as a digital asset derivative exchange provider (vii) Operating as a digital asset services vendor (viii) Operating as a digital asset lending or digital asset repurchase transactions service provider. |
Contact us at info@salvusfunds.com if you are interested in establishing a Digital Asset Business in Bermuda; our Crypto-Assets Licensing team is ready to answer your questions.
3. Regulatory Capital Requirements
Licensed digital asset businesses are not subject to traditional regulatory capital requirements. Instead, they are required to maintain a minimum net assets as part of the requirements during the application process. The Digital Asset Business Act 2018 specifies that licensees must maintain net assets which should not fall below:
- $100,000 for Modified “M” License and Full “F” License
- $10,000 for Test “T” License
The required minimum net assets may be increased at the discretion of the Bermuda Monetary Authority, depending on the nature, size, risk exposure, and operational complexity of the licensed business. This ensures that the entity maintains sufficient financial resources relative to its activities and risk profile.
4. Licensing Timeframe
Typically, the Assessment and Licensing Committee of the BMA provides its initial decision from initial submission of application in approximately four weeks. However, this duration depends on the completeness and quality of the information provided, as well as the applicant’s ability to present a well-defined business plan.
5. How SALVUS can support your licensing application?
At SALVUS, our Crypto-Assets Licensing team offers a fully tailored approach to regulatory authorization in Bermuda, aligning with each client’s unique business model and strategic goals. Whether your firm is focused on token issuance, exchange operations, custodial wallet services, or payment solutions, we begin by thoroughly understanding your objectives, operational structure, and intended market activities. This allows us to accurately identify the most appropriate license class under Bermuda’s Digital Asset Business Act 2018—be it a Class T (Test), Class M (Modified), or Class F (Full) license—and provide clear, actionable guidance on capital adequacy, compliance requirements, and supervisory expectations as outlined by the Bermuda Monetary Authority (BMA).
From there, we work closely with your team to compile the required documentation, develop compliant policy frameworks, and prepare a robust application that meets the BMA’s regulatory standards. Drawing on our deep experience in digital finance regulation, we act as your key liaison with the Authority—facilitating efficient communication, addressing feedback promptly, and ensuring transparency throughout the licensing process. Our goal is not only to secure your license in a timely and efficient manner but to establish a foundation for sustainable growth and long-term regulatory success within Bermuda’s dynamic digital asset ecosystem. By managing both strategic and procedural elements of the process, SALVUS delivers a seamless and confident path to digital asset business licensing.
If you’re considering establishing a Digital Asset Business in Bermuda, our dedicated Crypto-Assets Licensing team is here to guide you every step of the way. For expert advice and personalized support, reach out to us at info@salvusfunds.com—we’re ready to answer your questions and help turn your plans into a compliant and successful reality.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.