Issue Digital Assets

Looking to issue digital assets in Bermuda using our regulatory framework? Perhaps you’d like to do a Security Token Offering, a Utility Token Offering or an Initial Coin Offering?

Bermuda’s regulatory framework provides the certainty needed to make it possible to launch products without being paralyzed by regulatory uncertainty.

For example, fund raise for your product or business in Bermuda by raising capital from FinTech friendly jurisdictions to get your initial traction and prove your business model. Then target more traditional markets when you’ve got the capacity to navigate the complex web of those jurisdiction’s securities laws.

Understanding Digital Assets

The first thing to understand is that we take a generic approach from a regulatory standpoint. Rather than distinguishing between Security Tokens, Utility Tokens and whatever other variation is developed in the future, we recognize that there is flexibility in leaving it generic.

We define Digital Assets generically in our legislation to provide the flexibility this new industry needs to grow. From a Bermuda perspective it doesn’t matter if your offering is a utility token or security token. This leaves you free to focus on how to compliantly raise money from citizens in other jurisdictions, where these sorts of distinctions do matter.

Issuing Digital Assets

In order to facilitate the issuance of Digital Assets, we modified our Companies Act in the summer of 2018 with an amendment and regulations.

Though we used the phrase “Initial Coin Offering” to describe these changes, the actual amendments are designed around the launching of digital assets generally, not specifically just utility tokens.

There is no requirement for a physical presence in order to launch Digital Assets, however we do encourage you to consider it.

Submit an application

Completed applications will be turned around within a month. We aim to be prompt with feedback if your application needs revision.

We recommend you take advantage of the Bermuda Business Development Agency’s concierge service for introductions to legal firms that can provide guidance on the process. Their information is available below.

You can download a copy of the application form here. Application submissions can be made to ico@gov.bm

 

Guidance and assistance

The Bermuda Business Development Agency (BDA) is a public private partnership that exists specifically to make the process of launching a business in Bermuda.

The BDA provides a concierge service where they guide you through the process of connecting with anyone and everyone you need to answer questions about your business and help you get established.

The BDA can provide you with a menu of local service providers who can be of assistance. Please get in touch with them at fintech@bda.bm for more information.