BERMUDA Law and Practice Contributed by: Bourn Collier and Sharon A. Beesley, BeesMont Law Limited
ing tokenised funds are exempted from DABA, and the Investment Funds Act (IFA) is expected to be amended to permit on-chain fund registers – con- firming that tokenised funds remain primarily within the IFA framework. • Technical standards evolution, including requiring time-locks on smart contract upgrades (non-emer- gency minimum 48-hour delay to smart contract upgrades), standards for Multi-sig signing of critical functions (including minting, treasury management and protocol upgrades require 4-of-6 or 5-of-7 multi-signature approval using hardware-backed keys such as HSMs or MPC). Also, the BMA had in mind to require mandatory testing of material smart contract upgrades in a shadow fork of the live main-net as well as expanded cyber-security controls around the tokenisation life cycle. • Embedded token standards – token standards must incorporate identity verification, transfer restrictions, configurable compliance rules and remediation mechanisms – operationalising “pro- grammable compliance” as a regulatory require- ment rather than an industry best practice.
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