The Bermuda Monetary Authority Drafts Regulation For Crypto Custodial Services

New draft for crypto regulation from Bermuda’s financial regulatory is in our crypto news today according to their official press release published on Tuesday.

The official document for the draft created by the Bermuda Monetary Authority is entitled ‘’Digital Asset Custody Code of Practice’’ hopes to clarify the stance on crypto custodial services in Bermuda in order to protect their clients’ assets.

In the document, there’s a detailed regulatory basis for the offering of crypto custodial services where business management and technology issues were included, but also transaction handling and operating hot and cold storage.

The goal is to deliver high protection for the crypto custody clients and the Bermuda Monetary Authority suggested that the Digital Asset Business must implement ‘’any assets belonging to clients are kept segregated’’.

The DAB is allowed to put all of the assets of the clients in a trust with a qualified custodian and they are also allowed to use indemnity insurance and take any other possible measures to guarantee the assets of the clients in case the DAB is suspended.

BMA’s senior advisor of financial technology Moad Fahmi explained that the authority will provide support a ‘’healthy digital asset ecosystem’’ so that ‘’quality players’’ that can impact the financial market, in general, be involved.

The Bermuda Monetary Authority is not a central bank but it is an integrated regulator of the financial sector in Bermuda and also operates as an issuer of the national currency of Bermuda.

Back in April, the BMA published another paper that was meant to measure the feedback from the public regarding the regulation of crypto-related services. Also, the government of Bermuda issued the first license for an ICO in July 2018.