DABA (Digital Asset Business Act)
Bermuda's 2018 law requiring companies conducting digital asset business to obtain a BMA licence.
The Digital Asset Business Act 2018 (DABA) is Bermuda's dedicated regulatory framework for companies conducting digital asset business. It was one of the first such frameworks globally when enacted, and it requires any company issuing, selling, redeeming, or providing services related to digital assets in or from Bermuda to obtain a licence from the BMA.
DABA licence classes: - Class F (Full): For fully operational digital asset businesses. Highest capital and compliance bar. - Class M (Modified): For development-stage or limited-scope businesses, with a pathway to Class F. - Class T (Test): A time-limited sandbox licence for testing services with real customers under supervisory oversight.
For reinsurance, DABA is most relevant when a business tokenises risk exposure — issuing tokens that represent shares in a reinsurance pool, a cat bond SPV, or a collateral trust. This activity is digital asset business under DABA, requiring a licence in addition to any insurance regulatory requirements.
The BMA's position as a single integrated regulator for both insurance and digital assets means that companies operating under both frameworks deal with one coherent regulatory body — a significant advantage over jurisdictions where these are handled by separate regulators with no coordination.
Example usage
“A fund manager tokenising ILS exposure for retail investors would need to assess both BMA insurance regulations and DABA licensing requirements — the BMA's Innovation Hub can advise on the appropriate framework.”
Frequently asked questions
What is DABA (Digital Asset Business Act)?
Bermuda's 2018 law requiring companies conducting digital asset business to obtain a BMA licence. The Digital Asset Business Act 2018 (DABA) is Bermuda's dedicated regulatory framework for companies conducting digital asset business. It was one of the first such frameworks globally when enacted, and it requires any company issuing, selling, redeeming, or providing services related to digital assets in or from Bermuda to obtain a licence from the BMA.
How is DABA (Digital Asset Business Act) used in practice?
A fund manager tokenising ILS exposure for retail investors would need to assess both BMA insurance regulations and DABA licensing requirements — the BMA's Innovation Hub can advise on the appropriate framework.
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