The MoU creates a framework enabling the collaboration between the BMA and the FSRA to support the establishment of digital assets entities across their jurisdictions and ensure their effective supervision. This framework encompasses regulatory and supervisory cooperation, investigative assistance and capacity enhancement initiatives.

The Memorandum creates a framework under which the Bermuda Monetary Authority and the Wyoming Division of Banking can co-operate to facilitate the establishment of digital assets entities across jurisdictions and their effective supervision. The framework includes supervisory co-operation, mutual assistance and the exchange of information.

The notice said the Statement of Principles is relevant to the BMA's decisions on whether to authorise a digital asset issuance and whether to revoke or restrict an authorisation. As such, the statement considers and details the factors underlying the interpretation of each of the minimum authorisation criteria under the Digital Asset Issuance Act 2020.

The rules provide requirements as to digital asset issuance should be conducted, including details of:

• required information;
• ongoing disclosure and other requirements;
• information technology and cybersecurity;
• custody of assets;
• compliance measures; and
• exemptions.

Specific feedback is sought on:

• the definition of local issuer;
• the types of custody arrangements seen in digital asset issuances; and
• the availability and cost of technology systems to support the requirements of the Rules.

Responses should be received by 20 July 2020.

The draft Digital Asset Business Act includes minimum requirements that will be applicable to all ICOs, including:

• mandatory disclosures of certain information related to the company;
• the digital asset being offered for sale;
• the rights of the purchaser.

Other key provisions include the establishment of a FinTech Advisory Committee to assist with consent applications and Copys around the publication and content requirements of ICO white papers.  

“Bermuda has an opportunity to become a global leader in the Fintech space by being one of the first countries in the world to specifically regulate ICOs," said Bermuda Premier, David Burt. 

"The proposed regulatory framework will provide legal certainty to companies looking to conduct ICOs in Bermuda."