Establishing a Digital Asset Business in Bermuda in 2026
Bermuda has become a leading destination for digital asset businesses, combining innovation, regulatory clarity, and international credibility. Its stable political and legal environment makes it an attractive base for fintech companies looking to launch or expand digital asset operations.
The Bermuda Monetary Authority (BMA) plays a central role in this success through its oversight of the Digital Asset Business Act 2018. With a clear, flexible, and risk-based licensing framework, the BMA has created a market where innovation is actively supported, while regulatory standards remain strong. This has firmly positioned Bermuda as a trusted jurisdiction for blockchain, crypto trading, and tokenised finance.
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 gives firms a clear competitive edge:
- Robust, forward-looking regulation under the Bermuda Monetary Authority (BMA), backed by the Digital Asset Business Act 2018, as amended.
- Flexible, tiered licensing that supports growth from early-stage testing to full-scale operations
- High regulatory standards across governance, cybersecurity, and client asset protection, building trust with investors and partners
- Risk-based supervisory approach that adapts to your business model while maintaining strong oversight
- Global credibility from operating within a respected, well-regulated financial centre with alignment to international standards
For firms looking to combine innovation with regulatory certainty, Bermuda offers a powerful foundation to launch, scale, and grow with confidence.
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. |
In addition to selecting the appropriate licence category, applicants should also take into account the BMA’s current guidance and rules when preparing their application. This includes the BMA’s Guidance for Prospective Applicants for Licensing (2025) and Digital Asset Business (Custody of Client Assets) Rules 2025, particularly for business models involving custody, client assets, stablecoins, lending, staking, or exchange activities.
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, under the Digital Asset Business Act 2018, they are required to maintain minimum net assets both during the application process and on an ongoing basis as a prudential requirement. The Digital Asset Business Act 2018 specifies that licensees must maintain net assets that 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?
SALVUS delivers tailored support for digital asset business licensing in Bermuda, aligned with each client’s business model, activities, and growth plans.
- We help firms identify the right licence class under the Digital Asset Business Act 2018, whether Class T, Class M, or Class F.
- Our team advises on key BMA expectations, including capital adequacy, governance, compliance, cybersecurity, client asset protection, and internal controls.
- We assist with preparing the full application package, including required documentation, policies, procedures, and supporting materials.
- SALVUS acts as a key liaison with the Bermuda Monetary Authority, helping manage communication, feedback, and regulatory engagement.
- Our approach is practical, structured, and focused on securing authorisation while building a strong foundation for long-term regulatory success.
With SALVUS, firms gain a clear, confident, and efficient path to entering Bermuda’s digital asset ecosystem.
Contact us at info@salvusfunds.com if you are considering establishing a Digital Asset Business in Bermuda. Our Crypto-Assets Licensing team is ready to guide you through every stage, helping you bring your vision to the market with full regulatory and licensing confidence.
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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.