Crypto Licensing - Bermuda

About Bermuda

One of the most compelling reasons to create a bank account in Bermuda is that the country is extremely tax-friendly. Because Bermuda does not tax business earnings, capital gains, or most other forms of income, having a Bermuda bank account can help you plan your taxes

Bermuda offers the best of both worlds. It has many of the typical benefits of offshore financial countries without the negative reputation or dodgy characters, and it also has several unique banking benefits.

Bermuda is a British overseas territory in the western North Atlantic Ocean that is self-governing. It is an archipelago of seven main islands and over 170 additional (named) islets and rocks, located approximately 650 miles (1,050 km) east of Cape Hatteras (North Carolina, United States).

According to the most recent United Nations estimates, Bermuda’s current population is 61,626 as of Sunday, May 7, 2023.

The spoken language in Bermuda is English, as is the written language.

Bermuda’s laws are based on the common law legal system of England and Wales, so the decisions of the English Court of Appeal and House of Lords are highly persuasive in Bermuda Courts.

1. Clarity and compliance with regulations

Bermuda has a strong regulatory framework in place for digital assets including cryptocurrencies. Businesses can operate inside a well-defined legal framework by getting a crypto licence, ensuring compliance with applicable laws and regulations.

2. Reputation and Credibility 

Bermuda has positioned itself as having a favourable regulatory environment for digital assets. A Bermuda crypto licence can boost a company’s legitimacy and reputation, perhaps attracting investors and consumers that value transparency and regulatory compliance.

3. Global Market Access

Businesses may obtain better access to global markets with a crypto licence from Bermuda. Many nations prefer to do business with regulated firms, and having a recognised licence can allow partnerships and expansion into new markets.

4. Business Adaptability

Bermuda’s digital asset regulation system is intended to be business-friendly while also retaining adequate oversight. This adaptability enables firms to innovate and develop new bitcoin products and services, promoting growth and technical innovation.

5. Investor Defence

Disclosure regulations, transparency standards, and anti-money laundering procedures are among the features of Bermuda’s regulatory structure designed to protect investors. These investor protection methods may entice investors looking for a safe and regulated environment.

6. Tax Benefits

Bermuda is well-known for its favourable tax policy, which includes no corporate income tax, capital gains tax, or dividend withholding tax. This may bring tax benefits to enterprises engaged in the bitcoin sector.

7. Ecosystem Support

Bermuda has worked hard to create a welcoming environment for digital assets and blockchain technology. The government has launched programmes to encourage blockchain startups and has invested in the sector’s infrastructure and personnel.


License: Digital Asset Business License
Timeframe for Approval: 2 months
Regulator: Bermuda Monetary Authority

Company Structure

Local Director: At least 2 directors
Local Shareholder: At least 1 shareholder
Local Registered Office: Required
Local Staff: Required
Compliance Officer: Required
AML/KYC: Required
Audit: Required
Economic Substance: Required
Corporate Tax Rate: 0%
Currency: The official currency of Bermuda is the Bermudian dollar (BMD), which has a fixed exchange rate with the United States dollar (USD).
Minimum Paid-up Capital: US$1.00
Capital Requirement: US$100,000
Gov. App Fee: US$5,000

The measures that follow will be taken in order to receive a licence:

  1. Document collection to meet the application, KYC, and DD requirements
  2. Registration of the proposed company name
  3. The Bermuda Co. is formed.
  4. Adoption of resolutions by the board of directors and shareholders
  5. Filling out a licence application for the British Medical Association’s Assessment and Licencing Committee (the “ALC”):
  • Creating application forms
  • Examining the business plan and other documents included with the application
  • Liaison with authorities regarding attendance and application evaluation
  • Digital Asset Business License
  • Regulatory Compliance
  • Capital Requirements
  • Cybersecurity Measures
  • Financial Audits
  • Governance and Risk Management
  • Investor Protection
  • Ongoing Reporting and Record-Keeping

Please send us the following documents.

  • Notarized copy of each shareholder’s and director’s valid passport
  • Notarized copy of evidence of address (for example, each Shareholder and Director’s utility bill)
  • A cover letter outlining the application’s executive summary and demonstrating how the minimal licencing conditions for the applicable class or category of digital asset business are met.
  • A copy of the applicant’s anti-money laundering and counter-terrorist financing policies and procedures.

Information regarding:

Corporate stockholders/owners, such as:

  • Financial statements that have recently been audited
  • Any regulatory filings should be copied.
  • Historical context

Individual shareholders/owners, such as:

  • Forms for personal declaration
  • References from ultimate beneficial owners’ banks
  • Statements of net worth (for individual owners)
  • A copy of the applicant’s proposed cybersecurity programme, including hot and cold customer private key storage policies and procedures
  • Describe how the BMA will have access to a node or other arrangement that will allow it to monitor digital asset transaction records.
  • Acceptance letters from the applicant’s auditor and senior representative, as well as the senior representative’s curriculum vitae
  • The applicant’s headquarters address
  • A certification by an applicant’s officer that the applicant is aware of and will follow the code of practice
  • Comprehensive Business Plan
  1. Formation of international business corporation.
  2. Preparation and drafting of shareholder and officer agreements.
  3. Preparation and drafting of narrative business plan.
  4. Prepare five year financial projections.
  5. Preparation and drafting of current financial statements
  6. Preparation and drafting of personal financial statements for owners.
  7. Identification and draft letters naming principal representative and auditor.
  8. Draft and prepare required bank charter and prospectus
  9. Preparation and drafting application with regulatory authorities.
  10. Respond and draft responses to regulatory authority application inquiries.
  11. Facilitate and consummate bankcard relationship with prepaid card program managers
  12. Preparation and drafting of policy agreements and related documents.
  13. Facilitate and consummate IBAN and correspondent bank relationship
  14. Provide for required physical presence and local director
  15. Preparation and review of client agreements, website disclosures and related agreements.