# DABA: Digital Asset Business Act 2018

Source page: https://protegra.io/licensing/laws/bm-digital-asset-business-act-2018/

The Digital Asset Business Act 2018 (2018:28) is Bermuda's licensing law for digital asset business, enforced by the Bermuda Monetary Authority. It creates the Class F and Class M digital asset business licences covering token issuance, exchanges, custodial wallets, and digital-asset payment services.

## At a glance

| Official title | Digital Asset Business Act 2018 [1] |
| --- | --- |
| English title | Digital Asset Business Act 2018 |
| Citation | 2018 : 28 |
| Jurisdiction | [Bermuda](https://protegra.io/licensing/jurisdictions/bermuda/) |
| Type | act |
| Adopted | 2018-06-25 |
| In force from | 2018-09-10 |
| Status | in force |

## Full text

**Official full text:** [Digital Asset Business Act 2018 (PDF, en)](https://www.bma.bm/viewPDF/documents/2023-11-14-11-11-48-Digital-Asset-Business-Act-2018.pdf) [2] · 207 KB · file checked 2026-09-24

Official page: [bma.bm](https://www.bma.bm/digital-asset-business) [2]

## Summary

The Digital Asset Business Act 2018 is Bermuda's licensing statute for digital asset business, administered by the Bermuda Monetary Authority. It restricts carrying on digital asset business in or from Bermuda (issuing/selling/redeeming digital assets, digital-asset payment services, operating an exchange, custodial wallet services, or acting as a digital asset services vendor) without a licence. Two licence classes exist: Class F (unrestricted) and Class M (for a defined, extendable period set by the Authority). The Act sets application and fee requirements, prudential standards, codes of practice, custody/client-asset protection, senior representative and Head Office duties, an objections regime for 10%/majority shareholder controllers, audit and investigation powers, and offences for unlicensed activity, false information, and misuse of the term 'digital asset business'. It also amends Bermuda's AML/ATF statutes to bring licensed undertakings within the regulated-institution definitions.

Summary written by the Atlas from the official text; the law itself prevails.

## Main articles

- **s.10**: Prohibits carrying on digital asset business without a licence; sets fines up to $250,000 and up to 5 years' imprisonment.
- **s.12**: Creates Class F licence (unrestricted) and Class M licence (fixed, extendable period).
- **s.14**: Authority may determine that an applicant be issued a different class of licence than applied for.
- **s.16**: Licensed undertakings pay fees determined by the Authority.
- **s.34**: Objections-to-controllers regime: no one may become a 10% or majority shareholder controller without notifying the Authority.
- **s.73**: Extends offence liability to officers where the offence was committed with their consent, connivance or neglect.

## Licences it governs

- [VASP · BermudaDigital Asset Business Class F (Full) LicenceBMA](https://protegra.io/licensing/licences/vasp/bermuda-f/)
- [VASP · BermudaDigital Asset Business Class M (Modified) LicenceBMA](https://protegra.io/licensing/licences/vasp/bermuda-m/)
- [VASP · BermudaDigital Asset Business Class T (Test) LicenceBMA](https://protegra.io/licensing/licences/vasp/bermuda-t/)

## Regulators that apply it

- [BermudaBermuda Monetary Authority (BMA)The BMA is Bermuda's single integrated financial regulator. It licenses and supervises banks and deposit companies, digital asset businesses](https://protegra.io/licensing/regulators/bma-bermuda/)

## Sources

1. [bma.bm: 2023 11 14 11 11 48 Digital Asset Business Act 2018 (PDF)](https://www.bma.bm/viewPDF/documents/2023-11-14-11-11-48-Digital-Asset-Business-Act-2018.pdf): retrieved 2026-09-24
2. [bma.bm: digital asset business](https://www.bma.bm/digital-asset-business): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.