BERMUDA Law and Practice Contributed by: Bourn Collier and Sharon A. Beesley, BeesMont Law Limited
(whose ordinary business involves the acquisition, disposal or holding of digital assets, whether as principal or agent). A DAIA authorised undertaking is required to publish an issuance document prior to offering digital assets to the public. Circumstances which are exempt from the obligation to file an issuance document under DAIA are as follows. • Existing Listing – digital assets are listed on an appointed stock exchange or on an accredited digital asset exchange. • Existing application for Listing, issuance document not required – an application has been made for the digital assets to be so listed, and the rules of the appointed stock exchange or accredited digital asset exchange do not require the undertaking to publish and file an issuance document at such time or in such circumstances. • Already regulated, issuance document not required – the undertaking is subject to the rules or regu- lations of a competent authority, and such rules or regulations do not require the undertaking to publish and file an issuance document at such time or in such circumstances, except where exemption from publication and filing of an issuance docu- ment is given by reason of the offer via the digital asset issuance being made only to persons who are resident outside the jurisdiction of the compe- tent authority. • Issuance Document already approved – appointed stock exchange, accredited digital asset business or any competent authority has received or oth- erwise accepted an issuance document or other document in connection with the offering via the digital asset issuance to the public. There are substantial penalties under DABA and DAIA for anyone who fails to comply with any require- ment or contravenes any prohibition imposed by or under the legislation, including potential fines of up to BMD10 million. In addition the BMA has a wide range of enforcement options available to deal with any failure to comply with prudential and AML/ATF (Anti-Money Laundering and Anti-Terrorist Financing – otherwise called Combating the Financing of Terror- ism (CFT)) requirements.
In respect of the Insurance Regulatory Sandbox and Innovation Hub, see commentary about sandboxes below. Privacy and Data Protection On 1 January 2025, the Personal Information Protec- tion Act 2016 (PIPA) came fully into force in Bermuda and all Bermuda organisations which use personal information (whether wholly or partly by automated means including as part of a structured filing system) are subject to this Act. As in other jurisdictions, the introduction has meant that Bermuda-based organisations, including digital asset firms, have to assess their own operations and have established processes to ensure compliance. This can include: • the adoption of policies to take into account the nature, scope, context and purposes of the use of personal information and the risk to individuals from such use; • engaging with third parties to ensure their compli- ance with PIPA at all times; • designation of a privacy officer who will have primary responsibility for communicating with the Privacy Commissioner; • undertaking assessments to determine statutory conditions of use the organisation can rely on; • preparing a privacy notice and having protocols for providing to individuals when personal information is collected; • ensure personal information held is accurate, up to date, adequate, relevant, is used in a lawful and fair manner; • implement safeguards to protect personal informa- tion against risks of unauthorised access, destruc- tion, modification or disclosure; and • assess the level of protection provided by an overseas third party prior to making a transfer of personal information. Impacts on Bermuda’s digital asset firms from PIPA compliance programmes will depend on the type of personal information they are using (and manner of use) and how such programs interface with on-chain operations. For example, an on-chain insurance mar- ket (using significant personal information of insured)
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