Bermuda operates a mature, live regulatory framework for stablecoin issuance under the Digital Asset Business Act 2018 (DABA) and Digital Asset Issuance Act 2020 (DAIA). The BMA published comprehensive Single Currency Pegged Stablecoin (SCPS) Guidance in May 2024 (among the first globally) establishing prudential standards for fiat-backed stablecoins. Framework requires full reserve backing (1:1 ratio), segregated bankruptcy-remote assets, daily valuations, independent monthly audits, stress testing, and robust governance. Issuers must obtain DABA licenses with risk-based supervision. Over 40 digital asset companies are licensed; multiple stablecoin issuers operate actively. Notably, Bermuda permits yield-bearing stablecoins (distinguishing feature) and has zero income/capital gains taxes on digital assets. Government is piloting USDC adoption (January 2026) with Coinbase and Circle. The regime demonstrates regulatory clarity and institutional credibility, attracting global stablecoin issuers.
Applicable Laws:
Digital Asset Business Single Currency Pegged Stablecoins (SCPS) Guidance - https://www.bma.bm/viewPDF/documents/2024-12-02-16-55-46-Digital-Asset-Business--Single-Currency-Pegged-Stablecoins-SCPS-Guidance.pdf
Digital Asset Business Act 2018 (DABA) - https://parliament.bm/admin/uploads/bill/35fd30cafe1df0829e2a85ff4ec874b9.pdf
Digital Asset Issuance Act 2020 (DAIA) - https://www.commonlii.org/bm/legis/consol_act/daia2020218.pdf
